8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
 SECURITIES EXCHANGE ACT OF 1934

Date of Report:  July 31, 2012

  CUMMINS INC.
(Exact name of registrant as specified in its charter)

Indiana
(State or other Jurisdiction of
Incorporation) 1-4949
(Commission File Number) 35-0257090
(I.R.S. Employer Identification
 No.)

500 Jackson Street
P. O. Box 3005
Columbus, IN  47202-3005
(Principal Executive Office)  (Zip Code)

Registrant's telephone number, including area code:  (812) 377-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On July 31, 2012, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the second quarter of 2012.  A copy of Cummins' press release is attached hereto as Exhibit 99 and hereby incorporated by reference.
 

Item 9.01. Financial Statements and Exhibits.

(d) The following exhibit is furnished pursuant to Item 2.02 herewith:
 

99-Press Release dated July 31, 2012

SIGNATURE
 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 31, 2012

CUMMINS INC.

 /s/ Marsha L. Hunt
______________________________

Marsha L. Hunt
Vice President - Corporate Controller
(Principal Accounting Officer)

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (a)
		Three months ended
		July 1,		April 1,		June 26,
In millions, except per share amounts		2012		2012		2011
NET SALES		$	4,452	$	4,472	$	4,641
	Cost of  sales		3,242		3,274		3,438
GROSS MARGIN			1,210		1,198		1,203
OPERATING EXPENSES AND INCOME
	Selling, general and administrative expenses		487		475		463
	Research, development and engineering expenses		187		181		157
	Equity, royalty and interest income from investees  (Note 1)		104		104		117
	Gain on sale of businesses		6		-		68
	Other operating income (expense), net		2		2		-
OPERATING INCOME			648		648		768
	Interest income		7		8		10
	Interest expense		8		8		13
	Other income (expense), net		14		2		(3)
INCOME BEFORE INCOME TAXES			661		650		762
	Income tax expense  (Note 2)		166		175		225
CONSOLIDATED NET INCOME			495		475		537
	Less: Net income attributable to noncontrolling interests		26		20		32
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$	469	$	455	$	505
EARNINGS PER COMMON SHARE ATTRIBUTABLE
	TO CUMMINS INC.
	Basic	$	2.47	$	2.39	$	2.61
	Diluted	$	2.47	$	2.38	$	2.60
WEIGHTED AVERAGE SHARES OUTSTANDING
	Basic		189.8		190.4		193.8
	Diluted		190.1		190.8		194.4
CASH DIVIDENDS DECLARED PER COMMON SHARE		$	0.40	$	0.40	$	0.2625

(a)     Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (a)
		Six months ended
In millions, except per share amounts		July 1, 2012		June 26, 2011
NET SALES		$	8,924	$	8,501
	Cost of  sales		6,516		6,341
GROSS MARGIN			2,408		2,160
OPERATING EXPENSES AND INCOME
	Selling, general and administrative expenses		962		852
	Research, development and engineering expenses		368		286
	Equity, royalty and interest income from investees  (Note 1)		208		213
	Gain on sale of businesses		6		68
	Other operating income (expense), net		4		(6)
OPERATING INCOME			1,296		1,297
	Interest income		15		16
	Interest expense		16		23
	Other income (expense), net		16		(6)
INCOME BEFORE INCOME TAXES			1,311		1,284
	Income tax expense  (Note 2)		341		382
CONSOLIDATED NET INCOME			970		902
	Less: Net income attributable to noncontrolling interests		46		54
NET INCOME ATTRIBUTABLE TO CUMMINS INC.		$	924	$	848
EARNINGS PER COMMON SHARE ATTRIBUTABLE
	TO CUMMINS INC.
	Basic	$	4.86	$	4.36
	Diluted	$	4.85	$	4.34
WEIGHTED AVERAGE SHARES OUTSTANDING
	Basic		190.1		194.6
	Diluted		190.5		195.2
CASH DIVIDENDS DECLARED PER COMMON SHARE		$	0.80	$	0.525

(a)     Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (a)
In millions, except par value						July 1, 2012		December 31, 2011
ASSETS
Current assets
	Cash and cash equivalents					$	1,145	$	1,484
	Marketable securities						261		277
		Total cash, cash equivalents and marketable securities					1,406		1,761
	Accounts and notes receivable, net						2,620		2,526
	Inventories						2,581		2,141
	Prepaid expenses and other current assets						639		663
			Total current assets				7,246		7,091
Long-term assets
	Property, plant and equipment						5,475		5,245
		Accumulated depreciation					(3,051)		(2,957)
		Property, plant and equipment, net					2,424		2,288
	Investments and advances related to equity method investees						890		838
	Goodwill						345		339
	Other intangible assets, net						268		227
	Other assets						996		885
				Total assets		$	12,169	$	11,668
LIABILITIES
Current liabilities
	Loans payable					$	58	$	28
	Accounts payable (principally trade)						1,634		1,546
	Current portion of accrued product warranty						407		422
	Accrued compensation, benefits and retirement costs						340		511
	Deferred revenue						208		208
	Taxes payable (including taxes on income)						258		282
	Other accrued expenses						665		660
			Total current liabilities				3,570		3,657
Long-term liabilities
	Long-term debt						653		658
	Pensions						118		205
	Postretirement benefits other than pensions						425		432
	Other liabilities and deferred revenue						966		885
				Total liabilities			5,732		5,837
EQUITY
Cummins Inc. shareholders’ equity
	Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.2 shares issued						2,036		2,001
	Retained earnings						6,810		6,038
	Treasury stock, at cost, 32.0 and 30.2 shares						(1,777)		(1,587)
	Common stock held by employee benefits trust, at cost, 1.6 and 1.8 shares						(20)		(22)
	Accumulated other comprehensive loss
		Defined benefit postretirement plans					(703)		(724)
		Other					(243)		(214)
		Total accumulated other comprehensive loss					(946)		(938)
			Total Cummins Inc. shareholders’ equity				6,103		5,492
	Noncontrolling interests						334		339
				Total equity			6,437		5,831
					Total liabilities and equity	$	12,169	$	11,668

(a)     Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (a)
			Six months ended
In millions			July 1, 2012		June 26, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
	Consolidated net income		$	970	$	902
	Adjustments to reconcile consolidated net income to net cash provided by operating activities
		Depreciation and amortization		171		159
		Gain on sale of businesses		(6)		(68)
		Deferred income taxes		(39)		87
		Equity in income of investees, net of dividends		(25)		2
		Pension contributions in excess of expense		(52)		(47)
		Other post-retirement benefits payments in excess of expense		(7)		(10)
		Stock-based compensation expense		21		18
		Excess tax benefits on stock-based awards		(11)		(4)
		Translation and hedging activities		7		(6)
	Changes in current assets and liabilities, net of acquisitions and divestitures:
		Accounts and notes receivable		(116)		(513)
		Inventories		(439)		(290)
		Other current assets		(47)		11
		Accounts payable		61		307
		Accrued expenses		(173)		169
	Changes in other liabilities and deferred revenue			103		58
	Other, net			(21)		(31)
Net cash provided by operating activities				397		744
CASH FLOWS FROM INVESTING ACTIVITIES
	Capital expenditures			(266)		(215)
	Investments in internal use software			(40)		(22)
	Investments in and advances to equity investees			(40)		(20)
	Proceeds from sale of business, net of cash sold			-		111
	Acquisition of businesses, net of cash acquired			(12)		-
	Investments in marketable securities—acquisitions			(276)		(361)
	Investments in marketable securities—liquidations			280		343
	Cash flows from derivatives not designated as hedges			1		6
	Other, net			3		7
Net cash used in investing activities				(350)		(151)
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from borrowings			46		60
	Payments on borrowings and capital lease obligations			(75)		(94)
	Net borrowings under short-term credit agreements			3		11
	Distributions to noncontrolling interests			(32)		(26)
	Dividend payments on common stock			(152)		(102)
	Repurchases of common stock			(196)		(373)
	Excess tax benefits on stock-based awards			11		4
	Other, net			9		7
Net cash used in financing activities				(386)		(513)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS				-		8
Net increase (decrease) in cash and cash equivalents				(339)		88
Cash and cash equivalents at beginning of year				1,484		1,023
CASH AND CASH EQUIVALENTS AT END OF PERIOD			$	1,145	$	1,111

(a)     Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

			Engine		Components		Power Generation		Distribution		Non-segment Items(1)		Total
	In millions
	Three months ended July 1, 2012
	External sales		$	2,381	$	710	$	572	$	789	$	-	$	4,452
	Intersegment sales		460		326		337		5		(1,128)			-
		Total sales		2,841		1,036		909		794		(1,128)		4,452
	Depreciation and amortization(2)			47		19		11		8		-		85
	Research, development and engineering expenses			115		51		19		2		-		187
	Equity, royalty and interest income from investees			37		8		10		49		-		104
	Interest income			3		1		3		-		-		7
	Segment EBIT			376		116		94		92		(9)		669
	Three months ended April 1, 2012
	External sales		$	2,412	$	774	$	516	$	770	$	-	$	4,472
	Intersegment sales		447			325		264		5		(1,041)		-
		Total sales		2,859		1,099		780		775		(1,041)		4,472
	Depreciation and amortization(2)			47		19		11		7		-		84
	Research, development and engineering expenses			111		51		18		1		-		181
	Equity, royalty and interest income from investees			38		8		10		48		-		104
	Interest income			4		1		2		1		-		8
	Segment EBIT			381		143		76		94		(36)		658
	Three months ended June 26, 2011
	External sales		$	2,476	$	741	$	649	$	775	$	-	$	4,641
	Intersegment sales		424		291		260		10		(985)			-
		Total sales		2,900		1,032		909		785		(985)		4,641
	Depreciation and amortization(2)			44		18		11		5		-		78
	Research, development and engineering expenses			102		43		12		-		-		157
	Equity, royalty and interest income from investees			49		9		13		46		-		117
	Interest income			6		1		3		-		-		10
	Segment EBIT			377		120		105		106		67		775
	Six months ended July 1, 2012
	External sales		$	4,793	$	1,484	$	1,088	$	1,559	$	-	$	8,924
	Intersegment sales		907		651		601		10		(2,169)			-
		Total sales		5,700		2,135		1,689		1,569		(2,169)		8,924
	Depreciation and amortization(2)			94		38		22		15		-		169
	Research, development and engineering expenses			226		102		37		3		-		368
	Equity, royalty and interest income from investees			75		16		20		97		-		208
	Interest income			7		2		5		1		-		15
	Segment EBIT			757		259		170		186		(45)		1,327
	Six months ended June 26, 2011
	External sales		$	4,482	$	1,401	$	1,206	$	1,412	$	-	$	8,501
	Intersegment sales		809		555		498		15		(1,877)			-
		Total sales		5,291		1,956		1,704		1,427		(1,877)		8,501
	Depreciation and amortization(2)			89		36		21		11		-		157
	Research, development and engineering expenses			182		80		23		1		-		286
	Equity, royalty and interest income from investees			91		17		21		84		-		213
	Interest income			9		2		4		1		-		16
	Segment EBIT			667		225		194		195		26		1,307
(1)	Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses.  The three and six months ended July 1, 2012, include a $6 million gain ($4 million after-tax) related to adjustments from our 2011 divestitures.  There were no significant unallocated corporate expenses for the three months ended April 1, 2012.  The three and six months ended June 26, 2011, include a $68 million gain ($37 million after-tax) related to the sale of certain assets and liabilities of our exhaust business from the Components segment.  The gains have been excluded from segment results as they were not considered in our evaluation of operating results for the three and six months ended July 1, 2012 and June 26, 2011.   There were no other significant unallocated corporate expenses for the three and six months ended July 1, 2012 and June 26, 2011.
(2)	Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount that is included in the Condensed Consolidated Statements of Income as “Interest expense.”

CUMMINS INC. AND SUBSIDIARIES

RECONCILIATION OF SEGMENT INFORMATION

(Unaudited)

A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Income is shown in the table below:

		Three months ended						Six months ended
		July 1,		April 1,		June 26,		July 1,		June 26,
In millions		2012		2012		2011		2012		2011
Segment EBIT		$	669	$	658	$	775	$	1,327	$	1,307
Less
	Interest expense		8		8		13		16		23
Income before income taxes		$	661	$	650	$	762	$	1,311	$	1,284

CUMMINS INC. AND SUBSIDIARIES

SELECTED FOOTNOTE DATA

(Unaudited)

NOTE 1.  EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Income for the interim reporting periods was as follows:

			Three months ended						Six months ended
			July 1,		April 1,		June 26,		July 1,		June 26,
In millions			2012		2012		2011		2012		2011
Distribution Entities
North American distributors			$	38	$	40	$	35	$	78	$	65
Komatsu Cummins Chile, Ltda.				6		5		6		11		10
All other distributors				2		1		1		3		2
Manufacturing Entities
Chongqing Cummins Engine Company, Ltd.				17		18		19		35		31
Dongfeng Cummins Engine Company, Ltd.				17		16		26		33		49
Cummins Westport, Inc.				4		5		3		9		4
Shanghai Fleetguard Filter Co., Ltd.				4		3		4		7		8
Tata Cummins, Ltd.				3		4		3		7		7
Beijing Foton Cummins Engine Co., Ltd.				2		(2)		(1)		-		(3)
Valvoline Cummins, Ltd.				2		2		2		4		4
Komatsu manufacturing alliances				1		(1)		(1)		-		1
All other manufacturers				(1)		1		6		-		12
	Cummins share of net income		$	95	$	92	$	103	$	187	$	190
Royalty and interest income				9		12		14		21		23
		Equity, royalty and interest income from investees	$	104	$	104	$	117	$	208	$	213

NOTE 2.  INCOME TAXES

Our effective tax rate for the year is expected to approximate 26 percent, absent any discrete period activity.  Our tax rate is generally less than the 35 percent U.S. income tax rate primarily due to lower tax rates on foreign income.  The tax rates for the three and six month periods ended July 1, 2012, were 25.1 percent and 26.0 percent, respectively. 

The tax rates for the three and six month periods ended June 26, 2011, were 29.5 percent and 29.8 percent, respectively, and included a discrete tax charge of $4 million related to the enactment of state law changes in Indiana.  The decrease in the 2012 effective tax rates versus the comparable periods in 2011 is due primarily to our assertion that income earned after 2011 by our China operations is permanently reinvested, as well as certain tax planning strategies implemented in our U.K. subsidiaries.

CUMMINS INC. AND SUBSIDIARIES

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding special items

We believe this is a useful measure of our operating performance for the periods presented as it illustrates our operating performance without regard to special items including the gains related to the sale of certain assets and liabilities.  This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States of America (GAAP) and may not be consistent with measures used by other companies.  It should be considered supplemental data.  The following table reconciles net income attributable to Cummins Inc. to net income attributable to Cummins Inc. excluding special items for the three and six month periods ended July 1, 2012 and June 26, 2011. 

		Three months ended								Six months ended
		July 1, 2012				June 26, 2011				July 1, 2012				June 26, 2011
In millions		Net Income		Diluted EPS		Net Income		Diluted EPS		Net Income		Diluted EPS		Net Income		Diluted EPS
Net income attributable to Cummins Inc.		$	469	$	2.47	$	505	$	2.60	$	924	$	4.85	$	848	$	4.34
Subtract
	Gain on sale of businesses(1)		4		0.02		37		0.19		4		0.02		37		0.19
Net income attributable to Cummins Inc.
	excluding special items	$	465	$	2.45	$	468	$	2.41	$	920	$	4.83	$	811	$	4.15
(1)	The gains have been excluded from operating results as they were not considered in our evaluation of performance for the three and six months ended July 1, 2012 and June 26, 2011.

CUMMINS INC. AND SUBSIDIARIES

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

Earnings before interest, taxes and noncontrolling interests

We define EBIT as earnings before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries (EBIT).  We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs.  Below is a reconciliation of EBIT, a non-GAAP financial measure, to “Net income attributable to Cummins Inc.,” for each of the applicable periods:

			Three months ended						Six months ended
			July 1,		April 1,		June 26,		July 1,		June 26,
In millions			2012		2012		2011		2012		2011
Earnings before interest expense, income taxes
	and special items		$	663	$	658	$	707	$	1,321	$	1,239
Earnings before interest expense, income taxes and
	special items as a percentage of net sales			14.9%		14.7%		15.2%		14.8%		14.6%
Add
	Gain on sale of businesses			6		-		68		6		68
Earnings before interest expense and income taxes			$	669	$	658	$	775	$	1,327	$	1,307
EBIT as a percentage of net sales				15.0%		14.7%		16.7%		14.9%		15.4%
Less
	Interest expense			8		8		13		16		23
	Income tax expense			166		175		225		341		382
Consolidated net income				495		475		537		970		902
Less
	Net income attributable to noncontrolling interests			26		20		32		46		54
		Net income attributable to Cummins Inc.	$	469	$	455	$	505	$	924	$	848
Net income attributable to Cummins Inc. as a
	percentage of net sales			10.5%		10.2%		10.9%		10.4%		10.0%

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Engine segment net sales by market

2012
In millions		Q1		Q2		Q3		Q4		YTD
Heavy-duty truck		$	892	$	807	$	-	$	-	$	1,699
Medium-duty truck and bus			526		512		-		-		1,038
Light-duty automotive and RV			286		297		-		-		583
Industrial			861		859		-		-		1,720
Stationary power			294		366		-		-		660
	Total sales	$	2,859	$	2,841	$	-	$	-	$	5,700
2011
In millions		Q1		Q2		Q3		Q4		YTD
Heavy-duty truck		$	485	$	693	$	748	$	865	$	2,791
Medium-duty truck and bus			474		608		640		598		2,320
Light-duty automotive and RV			296		310		271		299		1,176
Industrial			855		988		977		1,030		3,850
Stationary power			281		301		319		269		1,170
	Total sales	$	2,391	$	2,900	$	2,955	$	3,061	$	11,307

Unit shipments by engine classification (including unit shipments to Power Generation)

2012
Units		Q1		Q2		Q3		Q4		YTD
Midrange			109,000		110,000		-		-		219,000
Heavy-duty			36,000		33,000		-		-		69,000
High horsepower			5,500		5,800		-		-		11,300
	Total units		150,500		148,800		-		-		299,300
2011
Units		Q1		Q2		Q3		Q4		YTD
Midrange			109,400		131,300		130,600		138,100		509,400
Heavy-duty			20,000		29,900		31,100		35,300		116,300
High horsepower			4,900		5,700		5,600		5,400		21,600
	Total units		134,300		166,900		167,300		178,800		647,300

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Component segment sales by business

2012
In millions		Q1		Q2		Q3		Q4		YTD
Emission solutions		$	404	$	349	$	-	$	-	$	753
Turbo technologies			298		297		-		-		595
Filtration			270		266		-		-		536
Fuel systems			127		124		-		-		251
	Total sales	$	1,099	$	1,036	$	-	$	-	$	2,135
2011
In millions		Q1		Q2		Q3		Q4		YTD
Emission solutions		$	273	$	311	$	306	$	372	$	1,262
Turbo technologies			297		314		298		314		1,223
Filtration			255		287		288		283		1,113
Fuel systems			99		120		123		123		465
	Total sales	$	924	$	1,032	$	1,015	$	1,092	$	4,063

In the first quarter of 2012, our Power Generation segment reorganized its reporting structure to include the following businesses:  power products, power systems, generator technologies and power solutions.  Sales for our Power Generation segment by business (including 2011 and 2010 reorganized balances) were as follows:

2012
In millions		Q1		Q2		Q3		Q4		YTD
Power products		$	375	$	459	$	-	$	-	$	834
Power systems			188		217		-		-		405
Generator technologies			141		160		-		-		301
Power solutions			76		73		-		-		149
	Total sales	$	780	$	909	$	-	$	-	$	1,689
2011
In millions		Q1		Q2		Q3		Q4		YTD
Power products		$	377	$	415	$	433	$	411	$	1,636
Power systems			189		210		188		228		815
Generator technologies			154		189		166		164		673
Power solutions			75		95		87		117		374
	Total sales	$	795	$	909	$	874	$	920	$	3,498
2010
In millions		YTD
Power products		$	1,465
Power systems			616
Generator technologies			550
Power solutions			288
	Total sales	$	2,919

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Distribution segment sales by product

2012
In millions		Q1		Q2		Q3		Q4		YTD
Parts and filtration		$	288	$	302	$	-	$	-	$	590
Power generation			186		201		-		-		387
Engines			166		147		-		-		313
Service			135		144		-		-		279
	Total sales	$	775	$	794	$	-	$	-	$	1,569
2011
In millions		Q1		Q2		Q3		Q4		YTD
Parts and filtration		$	235	$	271	$	283	$	296	$	1,085
Power generation			145		195		191		191		722
Engines			140		186		171		206		703
Service			122		133		138		141		534
	Total sales	$	642	$	785	$	783	$	834	$	3,044

EX-99

Contact:

Carole Casto

Executive Director - Corporate Communications

(317) 610-2480

carole.casto@cummins.com

July 31, 2012

For immediate release

Cummins reports strong second quarter profits

• Continues to deliver strong margins despite challenging economic environment
• Expects full-year revenues of $18 billion, EBIT of 14.25 to 14.75 percent

COLUMBUS, IND. – Cummins Inc. (NYSE: CMI) today reported strong profits for the second quarter of 2012.

Second quarter revenue of $4.45 billion decreased 4 percent from the same quarter in 2011.  Excluding the impact of divestitures and currency movements, revenues were flat year over year.  Growth in North America offset weakness in international markets, particularly China and Brazil.

Earnings before interest and taxes (EBIT) was $669 million or 15.0 percent of sales. Excluding gains from divestitures, EBIT was $663 million or 14.9 percent of sales compared to $707 million or 15.2 percent of sales in the second quarter of 2011.

Net income attributable to Cummins in the second quarter of 2012 was $469 million ($2.47 per diluted share) compared to $505 million in the same period a year ago ($2.60 per diluted share).  Excluding gains from divestitures, the Company reported earnings of $2.45 per share compared to $2.41 in the second quarter of 2011.

“The Company continued to deliver strong profits despite the weakening global economic conditions”, said Tom Linebarger, Chairman and Chief Executive Officer.  “Second quarter gross margins were at record levels as we continue to drive improvements in productivity and quality.  Looking forward, as the global economy improves, our growth opportunities remain strong.”

Based on the current forecast, Cummins expects full year revenues to be $18 billion, with EBIT in the range of 14.25 to 14.75 percent of sales. 

Other recent highlights:

• Cummins increased its dividend by 25 percent.
• The Company repurchased 1.8 million shares of common stock.
• Cummins Emission Solutions and Cummins Parts business each recently received supplier Quality Achievement awards from PACCAR for 2011 performance.
• The Company was recognized by Chrysler Group LLC as the 2012 Sustainability Supplier of the Year.
• The Company completed the acquisition of the emission control assets of Hilite International.

Second quarter 2012 detail (all comparisons to same period in 2011)

Engine Segment

• Sales – $2.8 billion, down 2 percent
• Segment EBIT – $376 million, or 13.2 percent of sales, compared to $377 million or 13.0 percent of sales
• Improved demand in  North American heavy duty truck, medium duty truck and light duty truck and construction markets offset by lower sales to China construction, Brazilian truck and North American oil and gas markets

Components

• Sales - $1.0 billion, flat
• Segment EBIT - $116 million, or 11.2 percent of sales, compared to $120 million or 11.6 percent of sales
• Increased demand in North American on-highway markets and higher product content in Brazil offset by lower demand in Europe and China and the impact of divestitures completed in 2011

Power Generation

• Sales – $909 million, flat
• Segment EBIT – $94 million, or 10.3 percent of sales, compared to $105 million or 11.6 percent of sales
• Higher revenues in North America offsetting lower demand in Europe, China and Latin America

Distribution

• Sales – $794 million, up 1 percent
• Segment EBIT – $92 million, or 11.6 percent of sales, compared to $106 million or 13.5 percent of sales
• Revenue increase driven by strong parts and service growth in several regions offsetting weaker demand in North American oil and gas market and power generation in the Middle East

About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins employs approximately 44,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations and approximately 6,500 dealer locations. Cummins earned $1.85 billion on sales of $18.0 billion in 2011. Press releases can be found on the Web at www.cummins.com.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future.  These forward looking statements include, without limitation, statements relating to our plans and expectations for our revenues for the second quarter of 2012, as well as the full year.  Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: the adoption and implementation of global emission standards; the price and availability of energy; the pace of infrastructure development; increasing global competition among our customers; general economic, business and financing conditions; governmental action; changes in our customers’ business strategies; competitor pricing activity; expense volatility; labor relations; and other risks detailed from time to time in our Securities and Exchange Commission filings, including particularly in the Risk Factors section of our 2011 Annual Report on Form 10-K.  Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.  The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.  More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information
Net income attributable to Cummins excluding gain on divestitures and EBIT are  non-GAAP measures used in this release, and are defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBIT is a measure used internally to assess the performance of the operating units.

Webcast information
Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at  www.cummins.com . Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.