8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

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

Date of Report: October 29, 2013

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 October 29, 2013, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the third quarter of 2013.  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 October 29, 2013

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: October 29, 2013

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
In millions, except per share amounts	September 29, 2013			June 30, 2013		September 30, 2012
NET SALES	$	4,266		$	4,525	4,118
Cost of sales	3,157			3,372		3,076
GROSS MARGIN	1,109			1,153		1,042
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	492			484		456
Research, development and engineering expenses	173			177		186
Equity, royalty and interest income from investees (Note 1)	91			108		94
Other operating income (expense), net	(11		)	10		(1		)
OPERATING INCOME	524			610		493
Interest income	6			10		5
Interest expense	8			8		9
Other income (expense), net	6			1		(2		)
INCOME BEFORE INCOME TAXES	528			613		487
Income tax expense  (Note 2)	154			172		117
CONSOLIDATED NET INCOME	374			441		370
Less: Net income attributable to noncontrolling interests	19			27		18
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	355		$	414	$	352
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	1.91		$	2.20	$	1.87
Diluted	$	1.90		$	2.20	$	1.86
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	186.0			187.8		188.6
Diluted	186.5			188.2		189.0
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	0.625		$	0.50	$	0.50

(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)

	Nine months ended
In millions, except per share amounts	September 29, 2013		September 30, 2012
NET SALES	$	12,713	$	13,042
Cost of sales	9,494		9,592
GROSS MARGIN	3,219		3,450
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	1,420		1,418
Research, development and engineering expenses	532		554
Equity, royalty and interest income from investees  (Note 1)	281		302
Gain on sale of businesses	—		6
Other operating income (expense), net	—		3
OPERATING INCOME	1,548		1,789
Interest income	21		20
Interest expense	22		25
Other income (expense), net	25		14
INCOME BEFORE INCOME TAXES	1,572		1,798
Income tax expense  (Note 2)	445		458
CONSOLIDATED NET INCOME	1,127		1,340
Less: Net income attributable to noncontrolling interests	76		64
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	1,051	$	1,276
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	5.61	$	6.73
Diluted	$	5.60	$	6.72
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	187.4		189.6
Diluted	187.8		190.0
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	1.625	$	1.30

(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	September 29, 2013			December 31, 2012
ASSETS
Current assets
Cash and cash equivalents	$	2,499		$	1,369
Marketable securities	162			247
Total cash, cash equivalents and marketable securities	2,661			1,616
Accounts and notes receivable, net	2,709			2,475
Inventories	2,513			2,221
Prepaid expenses and other current assets	643			855
Total current assets	8,526			7,167
Long-term assets
Property, plant and equipment	6,182			5,876
Accumulated depreciation	(3,234		)	(3,152		)
Property, plant and equipment, net	2,948			2,724
Investments and advances related to equity method investees	966			897
Goodwill	457			445
Other intangible assets, net	362			369
Other assets	1,077			946
Total assets	$	14,336		$	12,548
LIABILITIES
Current liabilities
Loans payable	$	15		$	16
Accounts payable (principally trade)	1,613			1,339
Current maturities of long-term debt	47			61
Current portion of accrued product warranty	374			386
Accrued compensation, benefits and retirement costs	413			400
Deferred revenue	269			215
Taxes payable (including taxes on income)	112			173
Other accrued expenses	547			546
Total current liabilities	3,390			3,136
Long-term liabilities
Long-term debt (Note 3)	1,731			698
Postretirement benefits other than pensions	407			432
Other liabilities and deferred revenue	1,344			1,308
Total liabilities	6,872			5,574
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.4 shares issued	2,095			2,058
Retained earnings	8,089			7,343
Treasury stock, at cost, 34.9 and 32.6 shares	(2,104		)	(1,830		)
Common stock held by employee benefits trust, at cost, 1.3 and 1.5 shares	(16		)	(18		)
Accumulated other comprehensive loss
Defined benefit postretirement plans	(738		)	(794		)
Other	(230		)	(156		)
Total accumulated other comprehensive loss	(968		)	(950		)
Total Cummins Inc. shareholders’ equity	7,096			6,603
Noncontrolling interests	368			371
Total equity	7,464			6,974
Total liabilities and equity	$	14,336		$	12,548

(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)

	Nine months ended
In millions	September 29, 2013			September 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$	1,127		$	1,340
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	305			262
Restructuring payments, net	(25		)	—
Gain on sale of businesses	—			(6		)
Gain on fair value adjustment for consolidated investees	(12		)	(7		)
Deferred income taxes	78			91
Equity in income of investees, net of dividends	(98		)	(51		)
Pension contributions in excess of expense	(96		)	(74		)
Other post-retirement benefits payments in excess of expense	(20		)	(16		)
Stock-based compensation expense	29			29
Excess tax benefits on stock-based awards	(13		)	(12		)
Translation and hedging activities	26			16
Changes in current assets and liabilities, net of acquisitions:
Accounts and notes receivable	(216		)	66
Inventories	(206		)	(367		)
Other current assets	182			(54		)
Accounts payable	252			(145		)
Accrued expenses	(146		)	(398		)
Changes in other liabilities and deferred revenue	147			154
Other, net	19			(41		)
Net cash provided by operating activities	1,333			787
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(417		)	(424		)
Investments in internal use software	(43		)	(62		)
Investments in and advances to equity investees	(12		)	(92		)
Acquisition of businesses, net of cash acquired	(145		)	(215		)
Proceeds from sale of business, net of cash sold	—			10
Investments in marketable securities—acquisitions	(360		)	(433		)
Investments in marketable securities—liquidations	433			475
Cash flows from derivatives not designated as hedges	(15		)	13
Other, net	14			9
Net cash used in investing activities	(545		)	(719		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings (Note 3)	987			64
Payments on borrowings and capital lease obligations	(62		)	(120		)
Net borrowings under short-term credit agreements	34			5
Distributions to noncontrolling interests	(53		)	(50		)
Dividend payments on common stock	(305		)	(246		)
Repurchases of common stock	(289		)	(231		)
Excess tax benefits on stock-based awards	13			12
Other, net	19			16
Net cash provided by (used in) financing activities	344			(550		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(2		)	31
Net increase (decrease) in cash and cash equivalents	1,130			(451		)
Cash and cash equivalents at beginning of year	1,369			1,484
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	2,499		$	1,033

(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)

		In millions	Engine			Components			Power Generation			Distribution			Non-segment Items(1)			Total
		Three months ended September 29, 2013
		External sales	$	2,045		$	784		$	499		$	938		$	—		$	4,266
		Intersegment sales	447			288			213			6			(954		)	—
		Total sales	2,492			1,072			712			944			(954		)	4,266
		Depreciation and amortization(2)	53			24			13			15			—			105
		Research, development and engineering expenses	103			51			18			1			—			173
		Equity, royalty and interest income from investees	31			5			13			42			—			91
		Interest income	4			1			1			—			—			6
		Segment EBIT	272			132			45			86			1			536
		Segment EBIT as a percentage of total sales	10.9		%	12.3		%	6.3		%	9.1		%				12.6		%
		Three months ended June 30, 2013
		External sales	$	2,209		$	786		$	583		$	947		$	—		$	4,525
		Intersegment sales	447			331			231			7			(1,016		)	—
		Total sales	2,656			1,117			814			954			(1,016		)	4,525
		Depreciation and amortization(2)	51			23			12			15			—			101
		Research, development and engineering expenses	102			57			17			1			—			177
		Equity, royalty and interest income from investees	52			9			10			37			—			108
		Interest income	7			—			2			1			—			10
		Segment EBIT(3)	339			136			76			100			(30		)	621
		Segment EBIT as a percentage of total sales	12.8		%	12.2		%	9.3		%	10.5		%				13.7		%
		Three months ended September 30, 2012
		External sales	$	2,131		$	663		$	526		$	798		$	—		$	4,118
		Intersegment sales	396			275			288			3			(962		)	—
		Total sales	2,527			938			814			801			(962		)	4,118
		Depreciation and amortization(2)	48			21			12			8			—			89
		Research, development and engineering expenses	115			51			19			1			—			186
		Equity, royalty and interest income from investees	25			7			12			50			—			94
		Interest income	2			1			2			—			—			5
		Segment EBIT(3)	239			89			73			99			(4		)	496
		Segment EBIT as a percentage of total sales	9.5		%	9.5		%	9.0		%	12.4		%				12.0		%
(1	)	Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended September 29, 2013, June 30, 2013, and September 30, 2012.
(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.”
(3	)	Distribution segment EBIT for the three months ended June 30, 2013, included a $5 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Cummins Rocky Mountain LLC. Distribution segment EBIT for the three months ended September 30, 2012, included a $7 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Cummins Central Power.

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

		In millions	Engine			Components			Power Generation			Distribution			Non-segment Items(1)			Total
		Nine months ended September 29, 2013
		External sales	$	6,139		$	2,292		$	1,621		$	2,661		$	—		$	12,713
		Intersegment sales	1,312			915			651			15			(2,893		)	—
		Total sales	7,451			3,207			2,272			2,676			(2,893		)	12,713
		Depreciation and amortization(2)	156			71			37			40			—			304
		Research, development and engineering expenses	310			165			53			4			—			532
		Equity, royalty and interest income from investees	106			21			30			124			—			281
		Interest income	13			2			5			1			—			21
		Segment EBIT(3)	806			387			172			281			(52		)	1,594
		Segment EBIT as a percentage of total sales	10.8		%	12.1		%	7.6		%	10.5		%				12.5		%
		Nine months ended September 30, 2012
		External sales	$	6,924		$	2,147		$	1,614		$	2,357		$	—		$	13,042
		Intersegment sales	1,303			926			889			13			(3,131		)	—
		Total sales	8,227			3,073			2,503			2,370			(3,131		)	13,042
		Depreciation and amortization(2)	142			59			34			23			—			258
		Research, development and engineering expenses	341			153			56			4			—			554
		Equity, royalty and interest income from investees	100			23			32			147			—			302
		Interest income	9			3			7			1			—			20
		Segment EBIT(3)	996			348			243			285			(49		)	1,823
		Segment EBIT as a percentage of total sales	12.1		%	11.3		%	9.7		%	12.0		%				14.0		%
(1	)	Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. The nine months ended September 30, 2012, included a $6 million gain ($4 million after-tax) related to adjustments from our 2011 divestitures.  The gain has been excluded from segment results as it was not considered in our evaluation of operating results for the corresponding periods.  There were no other significant unallocated corporate expenses for the nine months ended September 29, 2013 and September 30, 2012.
(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.”
(3	)	Distribution segment EBIT for the nine months ended September 29, 2013, included a $7 million gain and $5 million gain on the fair value adjustment resulting from the acquisitions of a controlling interest in Cummins Northwest LLC and Cummins Rocky Mountain LLC, respectively. Distribution segment EBIT for the nine months ended September 30, 2012, included a $7 million gain on the fair value adjustment resulting from the acquisition of a controlling interest in Cummins Central Power.

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						Nine months ended
In millions	September 29, 2013		June 30, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Total EBIT	$	536	$	621	$	496	$	1,594	$	1,823
Less: Interest expense	8		8		9		22		25
Income before income taxes	$	528	$	613	$	487	$	1,572	$	1,798

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							Nine months ended
In millions	September 29, 2013		June 30, 2013		September 30, 2012			September 29, 2013		September 30, 2012
Distribution Entities
North American distributors	$	34	$	29	$	37		$	98	$	115
Komatsu Cummins Chile, Ltda.	6		6		9			17		20
All other distributors	1		—		—			1		3
Manufacturing Entities
Chongqing Cummins Engine Company, Ltd.	15		17		14			44		49
Dongfeng Cummins Engine Company, Ltd.	13		20		9			45		42
Beijing Foton Cummins Engine Co., Ltd.	4		9		3			14		3
Shanghai Fleetguard Filter Co., Ltd.	4		4		3			11		10
Cummins Westport, Inc.	2		3		2			5		11
Tata Cummins, Ltd.	1		2		—			4		7
Komatsu manufacturing alliances	—		4		(1		)	3		(1		)
Valvoline Cummins, Ltd.	—		2		2			5		6
Xian Cummins Engine Company Ltd.	—		1		1			1		(5		)
All other manufacturers	3		1		6			6		12
Cummins share of net income	83		98		85			254		272
Royalty and interest income	8		10		9			27		30
Equity, royalty and interest income from investees	$	91	$	108	$	94		$	281	$	302

NOTE 2.  INCOME TAXES

Our effective tax rate for the year is expected to approximate 28.5 percent, excluding any one-time items that may arise.  Our tax rate is generally less than the 35 percent U.S. statutory income tax rate primarily due to lower tax rates on foreign income and research tax credits.  The tax rates for the three and nine month periods ended September 29, 2013, were 29.2 percent and 28.3 percent, respectively.  These tax rates include a $7 million discrete net tax expense for the third quarter tax adjustments: $4 million expense attributable to prior year tax return true-up adjustments, $1 million benefit related to release of prior year tax reserves and a discrete tax charge for $4 million related to a third quarter enactment of U.K. tax law changes. In addition, the nine month tax rate includes a discrete tax benefit in the first quarter of 2013 of $28 million attributable to the reinstatement of the research credit back to 2012, as well as a discrete tax expense in the first quarter of 2013 of $17 million, which primarily relates to the write-off of a deferred tax asset deemed unrecoverable.  On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law and reinstated the research tax credit.  As tax law changes are accounted for in the period of enactment, we recognized the discrete tax benefit in the first quarter of 2013.

Our tax rates for the three and nine month periods ended September 30, 2012, were 24.1 percent and 25.5 percent, respectively. These tax rates include a $16 million tax benefit for third quarter discrete tax adjustments, $6 million of which related to a dividend distribution of accumulated foreign income earned in prior years. These discrete tax adjustments also included a discrete tax benefit of $13 million for prior year tax return true-up adjustments and a discrete tax charge of $3 million related to the third quarter enactment of U.K. tax law changes. The increase in the 2013 effective tax rates compared to 2012 is primarily due to unfavorable changes in the pre-tax mix of income taxed in higher rate jurisdictions and discrete tax items.

CUMMINS INC. AND SUBSIDIARIES

SELECTED FOOTNOTE DATA

(Unaudited)

NOTE 3.  DEBT

In September 2013, we issued $1 billion aggregate principal amount of senior notes consisting of $500 millionaggregate principal amount of 3.65% senior unsecured notes due in 2023 and $500 millionaggregate principal amount of 4.875% senior unsecured notes due in 2043.We received net proceeds of $979 million. The senior notes pay interest semi-annually on April 1 and October 1, commencing on April 1, 2014. The indenture governing the senior notes contains covenants that, among other matters, limit (i) our ability to consolidate or merge into, or sell, assign, convey, lease, transfer or otherwise dispose of all or substantially all of our and our subsidiaries' assets to another person, (ii) our and certain of our subsidiaries' ability to create or assume liens and (iii) our and certain of our subsidiaries' ability to engage in sale and leaseback transactions. We currently anticipate using a portion of the net proceeds from the sale of the notes for the planned acquisitions of the equity that we do not already own in our partially-owned United States and Canadian distributors, as well as for general corporate purposes.

CUMMINS INC. AND SUBSIDIARIES

FINANICAL 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 one-time tax adjustments and gain 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 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 quarters ended September 29, 2013, June 30, 2013 and September 30, 2012:

			Three months ended
			September 29, 2013						June 30, 2013				September 30, 2012
In millions			Net Income			Diluted EPS			Net Income		Diluted EPS		Net Income		Diluted EPS
Net income attributable to Cummins Inc.			$	355		$	1.90		$	414	$	2.20	$	352	$	1.86
Less
One-time tax items (1)			(7		)	(0.04		)	—		—		16		0.08
Net income attributable to Cummins Inc. excluding special items			$	362		$	1.94		$	414	$	2.20	$	336	$	1.78
						Nine months ended
						September 29, 2013					September 30, 2012
In millions						Net Income			Diluted EPS		Net Income		Diluted EPS
Net income attributable to Cummins Inc.						$	1,051		$	5.60	$	1,276	$	6.72
Less
One-time tax items (1)						4			0.03		16		0.09
Gain on sale of businesses (2)						—			—		4		0.02
Net income attributable to Cummins Inc. excluding special items						$	1,047		$	5.57	$	1,256	$	6.61
(1	)	The one-time tax items for the three and nine months ended September 29, 2013, included a $7 million discrete tax expense. In addition, the nine months ended September 29, 2013, included a discrete tax benefit of $28 million attributable to the 2012 research credit as well as discrete tax expense of $17 million, which relates to the write-off of a deferred tax asset deemed unrecoverable.
		The three and nine month periods ended September 30, 2012, included a $16 million tax benefit for third quarter 2012 discrete tax adjustments, $6 million of which related to a dividend distribution of accumulated foreign income earned in prior years. These discrete tax adjustments also included a discrete tax benefit of $13 million for prior year tax return true-up adjustments and a discrete tax charge of $3 million related to the third quarter enactment of U.K. tax law changes.
(2	)	The gain has been excluded from operating results as it was not considered in our evaluation of performance for the nine months ended September 30, 2012.

CUMMINS INC. AND SUBSIDIARIES

FINANICAL 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									Nine months ended
In millions	September 29, 2013			June 30, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Earnings before interest income, income taxes and special items	$	536		$	621		$	496		$	1,594		$	1,817
Earnings before interest expense, income taxes and special items as a percentage of net sales	12.6		%	13.7		%	12.0		%	12.5		%	13.9		%
Add
Gain on sale of businesses	—			—			—			—			6
Earnings before interest expense and income taxes	$	536		$	621		$	496		$	1,594		$	1,823
EBIT as a percentage of net sales	12.6		%	13.7		%	12.0		%	12.5		%	14.0		%
Less
Interest expense	8			8			9			22			25
Income tax expense	154			172			117			445			458
Consolidated net income	374			441			370			1,127			1,340
Less
Net income attributable to noncontrolling interests	19			27			18			76			64
Net income attributable to Cummins Inc.	$	355		$	414		$	352		$	1,051		$	1,276
Net income attributable to Cummins Inc. as a percentage of net sales	8.3		%	9.1		%	8.5		%	8.3		%	9.8		%

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Engine segment net sales by market

2013
In millions	Q1		Q2		Q3		Q4		YTD
Heavy-duty truck	$	654	$	723	$	690	—		$	2,067
Medium-duty truck and bus	448		595		570		—		1,613
Light-duty automotive and RV	260		345		330		—		935
Industrial	714		762		709		—		2,185
Stationary power	227		231		193		—		651
Total sales	$	2,303	$	2,656	$	2,492	—		$	7,451
2012
In millions	Q1		Q2		Q3		Q4		YTD
Heavy-duty truck	$	892	$	807	$	656	$	609	$	2,964
Medium-duty truck and bus	526		512		478		575		2,091
Light-duty automotive and RV	286		297		353		343		1,279
Industrial	861		859		766		747		3,233
Stationary power	294		366		274		232		1,166
Total sales	$	2,859	$	2,841	$	2,527	$	2,506	$	10,733

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

2013
Units	Q1	Q2	Q3	Q4	YTD
Midrange	94,600	121,900	113,800	—	330,300
Heavy-duty	24,900	28,300	26,500	—	79,700
High-horsepower	4,200	3,600	3,500	—	11,300
Total units	123,700	153,800	143,800	—	421,300
2012
Units	Q1	Q2	Q3	Q4	YTD
Midrange	109,000	110,000	113,000	108,500	440,500
Heavy-duty	36,000	33,000	26,000	24,100	119,100
High-horsepower	5,500	5,800	4,600	3,900	19,800
Total units	150,500	148,800	143,600	136,500	579,400

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Component segment sales by business 

2013
In millions	Q1		Q2		Q3		Q4		YTD
Emission solutions	$	400	$	444	$	458	—		$	1,302
Turbo technologies	266		294		263		—		823
Filtration	255		271		248		—		774
Fuel systems	97		108		103		—		308
Total sales	$	1,018	$	1,117	$	1,072	—		$	3,207
2012
In millions	Q1		Q2		Q3		Q4		YTD
Emission solutions	$	404	$	349	$	325	$	337	$	1,415
Turbo technologies	298		297		257		254		1,106
Filtration	270		266		260		252		1,048
Fuel systems	127		124		96		96		443
Total sales	$	1,099	$	1,036	$	938	$	939	$	4,012

Power Generation segment sales by business

2013
In millions	Q1		Q2		Q3		Q4		YTD
Power products	$	409	$	474	$	421	—		$	1,304
Generator technologies	126		125		126		—		377
Power systems	179		187		122		—		488
Power solutions	32		28		43		—		103
Total sales	$	746	$	814	$	712	—		$	2,272
2012
In millions	Q1		Q2		Q3		Q4		YTD
Power products	$	375	$	459	$	425	$	395	$	1,654
Generator technologies	141		160		138		127		566
Power systems	188		217		174		178		757
Power solutions	76		73		77		65		291
Total sales	$	780	$	909	$	814	$	765	$	3,268

Distribution segment sales by business

2013
In millions	Q1		Q2		Q3		Q4		YTD
Parts and filtration	$	322	$	369	$	377	—		$	1,068
Power generation	163		241		234		—		638
Engines	152		183		170		—		505
Service	141		161		163		—		465
Total sales	$	778	$	954	$	944	—		$	2,676
2012
In millions	Q1		Q2		Q3		Q4		YTD
Parts and filtration	$	288	$	302	$	326	$	319	$	1,235
Power generation	186		201		178		242		807
Engines	166		147		157		195		665
Service	135		144		140		151		570
Total sales	$	775	$	794	$	801	$	907	$	3,277

EX-99

Contact:

Carole Casto

Executive Director – Corporate Communications

(317) 610-2480

For Immediate Release

October 29, 2013

Cummins reports results for the third quarter of 2013

• Third quarter revenues of $4.3 billion and EBIT of 12.6 percent of sales

• Now expects full year revenues to be down 3 percent compared to 2012

• Full year EBIT to be in the range 12.5 to 13 percent of sales

COLUMBUS, IN – Cummins Inc. (NYSE: CMI) today reported results for the third quarter of 2013.

Third quarter revenues of $4.3 billion increased 4 percent from the third quarter of 2012. Revenues in North America increased by 11 percent and international revenues declined by 4 percent. Within international markets, growth in China and Brazil was offset by weaker demand in India, Australia and Europe.

Earnings before interest and taxes (EBIT) were $536 million or 12.6 percent of sales, compared to $496 million or 12.0 percent of sales a year ago.

Net income attributable to Cummins in the third quarter was $355 million ($1.90 per diluted share), compared to $352 million ($1.86 per diluted share) in the third quarter of 2012.

“The Company increased gross margins in the third quarter primarily due to the benefits of our cost reduction initiatives. Material cost savings, productivity gains and lower warranty expenses all contributed to the improvement,” said Tom Linebarger, Chairman and CEO. “Revenues were below our expectations as we continue to face an environment of weak demand for capital goods in most of our major markets. Our focus on lowering costs in all parts of our business positions us well to deliver strong earnings growth as market conditions improve.”

Based on the current forecast, the Company expects full year revenues to be down 3 percent compared to 2012 and EBIT to be in the range of 12.5 to 13 percent of sales. Previously the Company expected revenues to be flat compared to 2012 and EBIT to be in the range of 13 to 14 percent.

Recent highlights include:

• The Company issued $1 billion of debt, consisting of $500 million of 3.65% senior unsecured notes due in 2023 and $500 million of 4.875% senior unsecured notes due in 2043

• Cummins leaders shared their five-year plans for profitable growth with analysts and investors, including expected revenues of between $25 and $31 billion and EBIT in the range of 16 to 18 percent by 2018

• The Company announced plans to acquire the remaining interest in its North American distributors, principally over the next three to five years

• Cummins made the Dow Jones Sustainability Indices for the 9th consecutive year and was recognized for the strides it has made in decreasing energy use

• Nissan announced plans to offer the Cummins 5.0 L V8 Turbo Diesel engine in its next generation Titan pickup truck

• The Company received its best score ever on greenhouse gas reduction from CDP, formerly known as the Carbon Disclosure Project

Third quarter detail (all comparisons to same period in 2012)

Engine Segment

• Sales – $2.5 billion, down 1 percent

• Segment EBIT – $272 million, or 10.9 percent of sales, compared to $239 million or 9.5 percent of sales

• Lower demand in global mining, stationary power and the light duty on-highway market in the US were the most significant drivers of the lower revenues

• Demand increased for medium duty truck engines in North America and Brazil

Components

• Sales - $1.1 billion, an increase of 14 percent

• Segment EBIT - $132 million, or 12.3 percent of sales, compared to $89 million or 9.5 percent of sales

• Higher revenues primarily related to higher on-highway demand in North America, Europe and China

Power Generation

• Sales – $712 million, down 13 percent

• Segment EBIT – $45 million, or 6.3 percent of sales, compared to $73 million or 9.0 percent of sales

• Weaker demand in most international markets, particularly Europe and India, offsetting stronger revenues in North America

Distribution

• Sales – $944 million, up 2% excluding acquisitions

• Segment EBIT – $86 million, or 9.1 percent of sales, compared to $99 million or 12.4 percent of sales

• Higher power generation and parts sales in North America offset by lower sales in South Pacific and China

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 currently employs approximately 46,000 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 6,500 dealer locations. Cummins earned $1.65 billion on sales of $17.3 billion in 2012. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at @Cummins and on YouTube at CumminsInc.

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 full year of 2013.  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 2012 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
EBIT is a non-GAAP measure used in this release, and is 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. EST. 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.