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Cummins Inc, USA
COMPANY WATCH
Cummins Inc, USA
ITT Industries Inc, USA
Key Figures (US$ million) Fourth quarter ended 31.12 2009
2008
Key Figures (US$ million) Fourth quarter ended 31.12 2009
Net Sales Of Which: Components
3400
3288
732
676
Cost of Sales
2627
2754
Gross Margin
773
534
Operating Income
385
102
Earnings before Interest and Taxes (EBIT) 383 Of Which: Components 73
56 (6)
Net Income
290
59
2009
2008
10 800
14 342
2355
3152
Net Sales Of Which: Components Cost of Sales
8631
11 402
Gross Margin
2169
2940
682
1272
Earnings before Interest and Taxes (EBIT) 675 Of Which: Components 95
1220
Operating Income
Net Income
484
169 818
COMMENT Cummins finished a challenging fiscal 2009 on a high, recording its most profitable fourth quarter in its history. Sales for the period were up 3.4% on the year earlier at US$3.4 billion, while net income leapt 391% to US$290 million. Cummins’ Components segment, home to its filtration, turbocharger, exhaust aftertreatment and fuel systems businesses, saw fourth quarter sales increase 8% on 2008 to reach US$732 million while its EBIT reached US$73 million after a year earlier loss of US6 million. In the Filtration division sales were down 12%, which the company said was almost entirely the result of a shift of exhaust business to its Emission 10
Filtration Industry Analyst
Sales and Revenues
2869.7
2945.0
Cost of Sales and Revenues
2021.1
2128.3
94.3
71.8
R&D Expenses Total Costs and Expenses
2581.7
2701.8
Operating Income
288.0
243.2
Net Income
199.2
185.5
Year ended 31.12 2009
2008
10 904.5
11 694.8
7833.6
8439.4
268.3
244.3
9995.1
10 484.7
Operating Income
909.4
1210.1
Net Income
643.7
794.7
Sales and Revenues Cost of Sales and Revenues
Year ended 31.12
Solutions business unit that saw revenues increase 14%. Cummins Chair and CEO Tim Solso said the company was very pleased with its performance in both the fourth quarter and full year. “By taking decisive action early in the recession to bring our costs in line with real demand for our products, and through the hard work of all our people worldwide, we delivered as we promised in 2009,” he said. “We earned a solid profit during the deepest recession in decades and generated a significant amount of cash while continuing to invest in technologies and programmes critical to our success.” ■ www.cummins.com
2008
R&D Expenses Total Costs and Expenses
COMMENT ITT completed fiscal 2009 with a mixed fourth quarter performance that saw revenues down 3% on the previous year at US$2.9 billion, while net income was up 7% at US$199.2 million. ITT’s Fluid Technology segment posted fourth-quarter sales of US$924 million, down 6% on a year-on-year basis and a 13% decline in organic revenue. The drop was attributed primarily to global weakness in the segment’s residential and commercial water business and lower revenues in North America from its industrial process business that offset continued strength in the municipal market. Fourthquarter operating income for the Fluid Technology sector was US$104 million, up 9% from the prior-year period, driven by improved productivity, lower restructuring and realignment costs and favourable foreign exchange that more than offset lower volume.
For the full year, ITT had group sales of US10.9 billion, down 7% on the fiscal 2008 figure. Net income for the year totalled US$643.7 million, a drop of 19% on the year earlier. In the Fluid Technology segment full year earnings declined 12% to US$3.4 billion, with organic sales down 9%, as stability in municipal markets was again offset by declines in industrial, residential and commercial markets. The segment generated operating income of US$393 million, down 16% percent on a comparable basis, as a result of lower volume and higher pension expense, partially offset by strong productivity and lower realignment costs. “For the long term, we believe we have the right strategies in place to grow organically while we invest for our future,” Steve Loranger, ITT’s chair, president, and CEO, said. ■ www.itt.com
March 2010
Cummins Inc, USA
ITT Industries Inc, USA
Key Figures (US$ million) Fourth quarter ended 31.12 2009
2008
Key Figures (US$ million) Fourth quarter ended 31.12 2009
Net Sales Of Which: Components
3400
3288
732
676
Cost of Sales
2627
2754
Gross Margin
773
534
Operating Income
385
102
Earnings before Interest and Taxes (EBIT) 383 Of Which: Components 73
56 (6)
Net Income
290
59
2009
2008
10 800
14 342
2355
3152
Net Sales Of Which: Components Cost of Sales
8631
11 402
Gross Margin
2169
2940
682
1272
Earnings before Interest and Taxes (EBIT) 675 Of Which: Components 95
1220
Operating Income
Net Income
484
169 818
COMMENT Cummins finished a challenging fiscal 2009 on a high, recording its most profitable fourth quarter in its history. Sales for the period were up 3.4% on the year earlier at US$3.4 billion, while net income leapt 391% to US$290 million. Cummins’ Components segment, home to its filtration, turbocharger, exhaust aftertreatment and fuel systems businesses, saw fourth quarter sales increase 8% on 2008 to reach US$732 million while its EBIT reached US$73 million after a year earlier loss of US6 million. In the Filtration division sales were down 12%, which the company said was almost entirely the result of a shift of exhaust business to its Emission 10
Filtration Industry Analyst
Sales and Revenues
2869.7
2945.0
Cost of Sales and Revenues
2021.1
2128.3
94.3
71.8
R&D Expenses Total Costs and Expenses
2581.7
2701.8
Operating Income
288.0
243.2
Net Income
199.2
185.5
Year ended 31.12 2009
2008
10 904.5
11 694.8
7833.6
8439.4
268.3
244.3
9995.1
10 484.7
Operating Income
909.4
1210.1
Net Income
643.7
794.7
Sales and Revenues Cost of Sales and Revenues
Year ended 31.12
Solutions business unit that saw revenues increase 14%. Cummins Chair and CEO Tim Solso said the company was very pleased with its performance in both the fourth quarter and full year. “By taking decisive action early in the recession to bring our costs in line with real demand for our products, and through the hard work of all our people worldwide, we delivered as we promised in 2009,” he said. “We earned a solid profit during the deepest recession in decades and generated a significant amount of cash while continuing to invest in technologies and programmes critical to our success.” ■ www.cummins.com
2008
R&D Expenses Total Costs and Expenses
COMMENT ITT completed fiscal 2009 with a mixed fourth quarter performance that saw revenues down 3% on the previous year at US$2.9 billion, while net income was up 7% at US$199.2 million. ITT’s Fluid Technology segment posted fourth-quarter sales of US$924 million, down 6% on a year-on-year basis and a 13% decline in organic revenue. The drop was attributed primarily to global weakness in the segment’s residential and commercial water business and lower revenues in North America from its industrial process business that offset continued strength in the municipal market. Fourthquarter operating income for the Fluid Technology sector was US$104 million, up 9% from the prior-year period, driven by improved productivity, lower restructuring and realignment costs and favourable foreign exchange that more than offset lower volume.
For the full year, ITT had group sales of US10.9 billion, down 7% on the fiscal 2008 figure. Net income for the year totalled US$643.7 million, a drop of 19% on the year earlier. In the Fluid Technology segment full year earnings declined 12% to US$3.4 billion, with organic sales down 9%, as stability in municipal markets was again offset by declines in industrial, residential and commercial markets. The segment generated operating income of US$393 million, down 16% percent on a comparable basis, as a result of lower volume and higher pension expense, partially offset by strong productivity and lower realignment costs. “For the long term, we believe we have the right strategies in place to grow organically while we invest for our future,” Steve Loranger, ITT’s chair, president, and CEO, said. ■ www.itt.com
March 2010