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: July 28, 2014

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 28, 2014, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the second quarterof 2014, which is furnished herewith as Exhibit 99. The information furnished pursuant to this Item 2.02, including Exhibit 99, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

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

99-Press Release dated July 28, 2014

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 28, 2014

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	June 29, 2014			March 30, 2014			June 30, 2013
NET SALES	$	4,835		$	4,406		$	4,525
Cost of sales	3,608			3,290			3,372
GROSS MARGIN	1,227			1,116			1,153
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	535			502			484
Research, development and engineering expenses	179			190			177
Equity, royalty and interest income from investees (Note 1)	105			90			108
Other operating income (expense), net	(6		)	(1		)	10
OPERATING INCOME	612			513			610
Interest income	6			5			10
Interest expense	15			17			8
Other income, net	39			10			1
INCOME BEFORE INCOME TAXES	642			511			613
Income tax expense  (Note 2)	170			153			172
CONSOLIDATED NET INCOME	472			358			441
Less: Net income attributable to noncontrolling interests	26			20			27
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	446		$	338		$	414
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	2.44		$	1.83		$	2.20
Diluted	$	2.43		$	1.83		$	2.20
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	182.8			184.3			187.8
Diluted	183.2			184.7			188.2
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	0.625		$	0.625		$	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)

	Six months ended
In millions, except per share amounts	June 29, 2014			June 30, 2013
NET SALES	$	9,241		$	8,447
Cost of sales	6,898			6,337
GROSS MARGIN	2,343			2,110
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	1,037			928
Research, development and engineering expenses	369			359
Equity, royalty and interest income from investees  (Note 1)	195			190
Other operating income (expense), net	(7		)	11
OPERATING INCOME	1,125			1,024
Interest income	11			15
Interest expense	32			14
Other income, net	49			19
INCOME BEFORE INCOME TAXES	1,153			1,044
Income tax expense  (Note 2)	323			291
CONSOLIDATED NET INCOME	830			753
Less: Net income attributable to noncontrolling interests	46			57
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	784		$	696
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	4.27		$	3.70
Diluted	$	4.26		$	3.69
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	183.5			188.1
Diluted	183.9			188.5
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	1.25		$	1.00

(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	June 29, 2014			December 31, 2013
ASSETS
Current assets
Cash and cash equivalents	$	2,219		$	2,699
Marketable securities	158			150
Total cash, cash equivalents and marketable securities	2,377			2,849
Accounts and notes receivable, net	3,188			2,649
Inventories	2,745			2,381
Prepaid expenses and other current assets	770			760
Total current assets	9,080			8,639
Long-term assets
Property, plant and equipment	6,739			6,410
Accumulated depreciation	(3,410		)	(3,254		)
Property, plant and equipment, net	3,329			3,156
Investments and advances related to equity method investees	934			931
Goodwill	465			461
Other intangible assets, net	353			357
Other assets	1,339			1,184
Total assets	$	15,500		$	14,728
LIABILITIES
Current liabilities
Loans payable	$	30		$	17
Accounts payable (principally trade)	1,905			1,557
Current maturities of long-term debt	33			51
Current portion of accrued product warranty	353			360
Accrued compensation, benefits and retirement costs	401			433
Deferred revenue	316			285
Taxes payable (including taxes on income)	125			99
Other accrued expenses	646			566
Total current liabilities	3,809			3,368
Long-term liabilities
Long-term debt	1,627			1,672
Pensions	233			232
Postretirement benefits other than pensions	341			356
Other liabilities and deferred revenue	1,332			1,230
Total liabilities	7,342			6,858
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.3 and 222.3 shares issued	2,113			2,099
Retained earnings	8,961			8,406
Treasury stock, at cost, 38.4 and 35.6 shares	(2,604		)	(2,195		)
Common stock held by employee benefits trust, at cost, 1.2 and 1.3 shares	(14		)	(16		)
Accumulated other comprehensive loss
Defined benefit postretirement plans	(597		)	(611		)
Other	(72		)	(173		)
Total accumulated other comprehensive loss	(669		)	(784		)
Total Cummins Inc. shareholders’ equity	7,787			7,510
Noncontrolling interests	371			360
Total equity	8,158			7,870
Total liabilities and equity	$	15,500		$	14,728

(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	June 29, 2014			June 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$	830		$	753
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	217			200
Gain on fair value adjustment for consolidated investees	(20		)	(12		)
Deferred income taxes	(88		)	20
Equity in income of investees, net of dividends	(108		)	(57		)
Pension contributions in excess of expense	(127		)	(78		)
Other post-retirement benefits payments in excess of expense	(14		)	(15		)
Stock-based compensation expense	21			19
Excess tax benefits on stock-based awards	(5		)	(8		)
Translation and hedging activities	(9		)	3
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(321		)	(265		)
Inventories	(223		)	(184		)
Other current assets	4			214
Accounts payable	289			310
Accrued expenses	120			(87		)
Changes in other liabilities and deferred revenue	116			100
Other, net	19			47
NET CASH PROVIDED BY OPERATING ACTIVITIES	701			960
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(245		)	(275		)
Investments in internal use software	(26		)	(24		)
Investments in and advances to equity investees	(11		)	(4		)
Acquisitions of businesses, net of cash acquired	(193		)	(134		)
Investments in marketable securities—acquisitions	(179		)	(243		)
Investments in marketable securities—liquidations	179			280
Cash flows from derivatives not designated as hedges	4			(23		)
Other, net	8			12
Net cash used in investing activities	(463		)	(411		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	17			2
Payments on borrowings and capital lease obligations	(39		)	(51		)
Net borrowings (payments) under short-term credit agreements	(48		)	56
Distributions to noncontrolling interests	(32		)	(28		)
Dividend payments on common stock	(229		)	(189		)
Repurchases of common stock	(430		)	(289		)
Excess tax benefits on stock-based awards	5			8
Other, net	—			18
Net cash used in financing activities	(756		)	(473		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	38			(63		)
Net increase (decrease) in cash and cash equivalents	(480		)	13
Cash and cash equivalents at beginning of year	2,699			1,369
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	2,219		$	1,382

(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 June 29, 2014
		External sales	$	2,178		$	953		$	475		$	1,229			$	—		$	4,835
		Intersegment sales	566			327			268			9				(1,170		)	—
		Total sales	2,744			1,280			743			1,238				(1,170		)	4,835
		Depreciation and amortization(2)	52			26			13			20				—			111
		Research, development and engineering expenses	105			53			18			3				—			179
		Equity, royalty and interest income from investees	45			9			9			42				—			105
		Interest income	4			1			1			—				—			6
		Segment EBIT	311			185			61			126			(3)	(26		)	657
		Segment EBIT as a percentage of total sales	11.3		%	14.5		%	8.2		%	10.2		%					13.6		%
		Three months ended March 30, 2014
		External sales	$	2,090		$	922		$	452		$	942			$	—		$	4,406
		Intersegment sales	473			308			187			8				(976		)	—
		Total sales	2,563			1,230			639			950				(976		)	4,406
		Depreciation and amortization(2)	51			26			12			16				—			105
		Research, development and engineering expenses	116			53			19			2				—			190
		Equity, royalty and interest income from investees	32			9			8			41				—			90
		Interest income	2			1			1			1				—			5
		Segment EBIT	269			167			25			76			(3)	(9		)	528
		Segment EBIT as a percentage of total sales	10.5		%	13.6		%	3.9		%	8.0		%					12.0		%
		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	339			136			76			100			(3)	(30		)	621
		Segment EBIT as a percentage of total sales	12.8		%	12.2		%	9.3		%	10.5		%					13.7		%
(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 June 29, 2014, March 30, 2014 and June 30, 2013.
(2	)	Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Income as "Interest expense."
(3	)	Distribution segment EBIT for the three months ended June 29, 2014, March 30, 2014 and June 30, 2013 included gains of $14 million, $6 million and $5 million on the fair value adjustments resulting from the acquisitions of controlling interests in North American distributors in each period, respectively.

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

In millions	Engine			Components			Power Generation			Distribution				Non-segment Items(1)			Total
Six months ended June 29, 2014
External sales	$	4,268		$	1,875		$	927		$	2,171			$	—		$	9,241
Intersegment sales	1,039			635			455			17				(2,146		)	—
Total sales	5,307			2,510			1,382			2,188				(2,146		)	9,241
Depreciation and amortization(2)	103			52			25			36				—			216
Research, development and engineering expenses	221			106			37			5				—			369
Equity, royalty and interest income from investees	77			18			17			83				—			195
Interest income	6			2			2			1				—			11
Segment EBIT	580			352			86			202			(3)	(35		)	1,185
Segment EBIT as a percentage of total sales	10.9		%	14.0		%	6.2		%	9.2		%					12.8		%
Six months ended June 30, 2013
External sales	$	4,094		$	1,508		$	1,122		$	1,723			$	—		$	8,447
Intersegment sales	865			627			438			9				(1,939		)	—
Total sales	4,959			2,135			1,560			1,732				(1,939		)	8,447
Depreciation and amortization(2)	103			47			24			25				—			199
Research, development and engineering expenses	207			114			35			3				—			359
Equity, royalty and interest income from investees	75			16			17			82				—			190
Interest income	9			1			4			1				—			15
Segment EBIT	534			255			127			195			(3)	(53		)	1,058
Segment EBIT as a percentage of total sales	10.8		%	11.9		%	8.1		%	11.3		%					12.5		%

⁽¹⁾Includes intersegment sales and profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 29, 2014 and June 30, 2013.

⁽²⁾Depreciation and amortization as shown on a segment basis excludes the amortization of debt discount and deferred costs included in theCondensed Consolidated Statements of Income as "Interest expense."The amortization of debt discount and deferred costs were $1 million and $5 million for the six months ended June 29, 2014 and June 30, 2013, respectively.

⁽³⁾Distribution segment EBIT for the six months ended June 29, 2014 and June 30, 2013 included gains of $20 million and $12 million on the fair value adjustments resulting from the acquisitions of controlling interests in North American distributors in each period, respectively.

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
In millions	June 29, 2014		March 30, 2014		June 30, 2013		June 29, 2014		June 30, 2013
Total EBIT	$	657	$	528	$	621	$	1,185	$	1,058
Less: Interest expense	15		17		8		32		14
Income before income taxes	$	642	$	511	$	613	$	1,153	$	1,044

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 reporting periods was as follows:

	Three months ended									Six months ended
In millions	June 29, 2014			March 30, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Distribution Entities
North American distributors	$	30		$	32		$	29		$	62		$	64
Komatsu Cummins Chile, Ltda.	8			6			6			14			11
All other distributors	1			1			—			2			—
Manufacturing Entities
Dongfeng Cummins Engine Company, Ltd.	22			14			20			36			32
Chongqing Cummins Engine Company, Ltd.	15			11			17			26			29
Beijing Foton Cummins Engine Co., Ltd. (Light-duty)	8			6			9			14			10
Shanghai Fleetguard Filter Co., Ltd.	3			3			4			6			7
Tata Cummins, Ltd.	2			2			2			4			3
Cummins Westport, Inc.	—			1			3			1			3
Beijing Foton Cummins Engine Co., Ltd. (Heavy-duty)	(7		)	(6		)	(7		)	(13		)	(10		)
All other manufacturers	14			9			15			23			22
Cummins share of net income	96			79			98			175			171
Royalty and interest income	9			11			10			20			19
Equity, royalty and interest income from investees	$	105		$	90		$	108		$	195		$	190

NOTE 2.  INCOME TAXES

Our effective tax rate for the year is expected to approximate 28 percent, excluding any one-time items that may arise and the research tax credit which expired December 31, 2013 and has not yet been renewed by Congress. 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.  The effective tax rates for the three and six month periods ended June 29, 2014, were 26.5 percent and 28 percent, respectively. The tax rate for the three months ended June 29, 2014, included a $2 million discrete tax benefit for the release of reserves for uncertain tax positions related to multiple state audit settlements. Additionally, the tax rate for the six month period included a $12 million discrete tax expense attributable primarily to state deferred tax adjustments, as well as a $6 million discrete net tax benefit resulting from a $70 million dividend paid from China earnings generated prior to 2012.

Our effective tax rate for the three month period ended March 30, 2014, was 29.9 percent, and included a $12 million discrete tax expense attributable primarily to state deferred tax adjustments, as well as a $6 million discrete net tax benefit resulting from a $70 million dividend paid from China earnings generated prior to 2012.

Our effective tax rates for the three and six month periods ended June 30, 2013, were 28.1 percent and 27.9 percent, respectively. These tax rates included a discrete tax benefit of $28 million attributable to the 2012 research credit reinstated in January 2013, as well as a discrete tax expense of $17 million, which primarily related to the write-off of a deferred tax asset deemed unrecoverable. The decrease in the three month effective tax rate from 2013 to 2014 is primarily due to favorable changes in the jurisdictional mix of pre-tax income and the 2014 favorable discrete tax item related to state audit settlements.

NOTE 3. ACQUISITION

Cummins Southern Plains LLC

On March 31, 2014, we acquired the remaining 50 percent interest in Cummins Southern Plains LLC (Southern Plains) from the former distributor principal. The purchase consideration was$92 millionas presented below, which included$41 million in cash and an additional$48 millionpaid to eliminate outstanding debt. The remaining $3 millionwill be paid in future periods. The intangible assets are primarily customer related and are being amortized over periods ranging from one to five years. The acquisition was accounted for as a business combination and the results of the acquired entity were included in the Distribution operating segment subsequent to the acquisition date. As a result of this transaction, second quarter 2014 Distribution segment results included a$13 milliongain, as we were required to re-measure our pre-existing 50 percent ownership interest in Southern Plains to fair value in accordance with GAAP. The transaction generated less than$1 millionof goodwill based on the purchase price allocation. Net sales for Southern Plains were$433 million for the year ended December 31, 2013. This amount is not fully incremental to our consolidated sales as the amount would be reduced by the elimination of sales to the previously unconsolidated entity.

The final purchase price allocation as of June 29, 2014, was as follows:

In millions
Accounts receivable	$	63
Inventory	59
Fixed assets	47
Intangible assets	11
Other current assets	9
Current liabilities	(53		)
Total business valuation	136
Fair value of pre-existing 50 percent interest	(44		)
Purchase price	$	92

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.  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. Below is a reconciliation of EBIT to “Net income attributable to Cummins Inc.,” for each of the applicable periods:

	Three months ended									Six months ended
In millions	June 29, 2014			March 30, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Earnings before interest expense and income taxes	$	657		$	528		$	621		$	1,185		$	1,058
EBIT as a percentage of net sales	13.6		%	12.0		%	13.7		%	12.8		%	12.5		%
Less
Interest expense	15			17			8			32			14
Income tax expense	170			153			172			323			291
Consolidated net income	472			358			441			830			753
Less
Net income attributable to noncontrolling interests	26			20			27			46			57
Net income attributable to Cummins Inc.	$	446		$	338		$	414		$	784		$	696
Net income attributable to Cummins Inc. as a percentage of net sales	9.2		%	7.7		%	9.1		%	8.5		%	8.2		%

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Engine segment net sales by market:

2014
In millions	Q1		Q2		Q3		Q4		YTD
Heavy-duty truck	$	722	$	796	$	—	$	—	$	1,518
Medium-duty truck and bus	601		646		—		—		1,247
Light-duty automotive and RV	361		336		—		—		697
Industrial	700		757		—		—		1,457
Stationary power	179		209		—		—		388
Total sales	$	2,563	$	2,744	$	—	$	—	$	5,307
2013
In millions	Q1		Q2		Q3		Q4		YTD
Heavy-duty truck	$	654	$	723	$	690	$	638	$	2,705
Medium-duty truck and bus	448		595		570		572		2,185
Light-duty automotive and RV	260		345		330		365		1,300
Industrial	714		762		709		811		2,996
Stationary power	227		231		193		176		827
Total sales	$	2,303	$	2,656	$	2,492	$	2,562	$	10,013

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

2014
Units	Q1	Q2	Q3	Q4	YTD
Midrange	118,900	118,700	—	—	237,600
Heavy-duty	28,800	30,300	—	—	59,100
High-horsepower	3,400	3,900	—	—	7,300
Total units	151,100	152,900	—	—	304,000
2013
Units	Q1	Q2	Q3	Q4	YTD
Midrange	94,600	121,900	113,800	115,700	446,000
Heavy-duty	24,900	28,300	26,500	25,700	105,400
High-horsepower	4,200	3,600	3,500	3,500	14,800
Total units	123,700	153,800	143,800	144,900	566,200

Component segment sales by business:

2014
In millions	Q1		Q2		Q3		Q4		YTD
Emission Solutions	$	543	$	582	$	—	$	—	$	1,125
Turbo Technologies	313		307		—		—		620
Filtration	265		275		—		—		540
Fuel systems	109		116		—		—		225
Total sales	$	1,230	$	1,280	$	—	$	—	$	2,510
2013
In millions	Q1		Q2		Q3		Q4		YTD
Emission Solutions	$	400	$	444	$	458	$	489	$	1,791
Turbo Technologies	266		294		263		292		1,115
Filtration	255		271		248		254		1,028
Fuel systems	97		108		103		100		408
Total sales	$	1,018	$	1,117	$	1,072	$	1,135	$	4,342

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Power Generation segment sales by business:

2014
In millions	Q1		Q2		Q3		Q4		YTD
Power products	$	373	$	445	$	—	$	—	$	818
Power systems	137		141		—		—		278
Alternators	105		126		—		—		231
Power solutions	24		31		—		—		55
Total sales	$	639	$	743	$	—	$	—	$	1,382
2013
In millions	Q1		Q2		Q3		Q4		YTD
Power products	$	409	$	474	$	421	$	421	$	1,725
Power systems	179		187		122		168		656
Alternators	126		125		126		119		496
Power solutions	32		28		43		51		154
Total sales	$	746	$	814	$	712	$	759	$	3,031

Distribution segment sales by business:

2014
In millions	Q1		Q2		Q3		Q4		YTD
Parts and filtration	$	382	$	461	$	—	$	—	$	843
Power generation	193		278		—		—		471
Engines	174		249		—		—		423
Service	201		250		—		—		451
Total sales	$	950	$	1,238	$	—	$	—	$	2,188
2013
In millions	Q1		Q2		Q3		Q4		YTD
Parts and filtration	$	322	$	369	$	377	$	397	$	1,465
Power generation	163		241		234		293		931
Engines	152		183		170		208		713
Service	141		161		163		175		640
Total sales	$	778	$	954	$	944	$	1,073	$	3,749

EX-99

Contact:

Carole Casto

Executive Director - Corporate Communications

(317) 610-2480

carole.casto@cummins.com

For Immediate Release

July 28, 2014

Cummins reports results for the second quarter of 2014

• Second quarter revenues of $4.8 billion, EBIT of 13.6 percent of sales on stronger North American truck markets

• Full year revenue expected to grow between 8 and 11 percent and EBIT to be in the range of 12.75 to 13.25 percent of sales

COLUMBUS, Indiana - Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2014.

Second quarter revenue of $4.8 billion increased 7 percent from the same quarter in 2013. The increase year-over-year was driven by stronger demand in on-highway markets and distributor acquisitions in North America.

Revenues in North America increased 14 percent while international sales decreased 1 percent compared to the second quarter a year ago. Within international markets, lower revenues in Mexico, Brazil and India offset stronger demand in China.

Earnings before interest and taxes (EBIT) were $657 million for the second quarter or 13.6 percent of sales. This compares to $621 million or 13.7 percent of sales a year ago.

Net income attributable to Cummins in the second quarter was $446 million ($2.43 per diluted share), compared to $414 million ($2.20 per diluted share) in the second quarter of 2013.

“Demand is growing in on-highway markets in North America this year as the economy improves and we have gained market share in medium duty truck and bus markets. Our Components business delivered very strong results in the second quarter generating record sales and profits,” said Chairman and CEO Tom Linebarger. “Earlier this month we raised the quarterly dividend by 25 percent and the Board of Directors also approved a new $1 billion share repurchase program, consistent with our commitment to return 50 percent of operating cash flow to shareholders and reflecting our confidence in the Company’s future.”

Based on the current forecast, Cummins expects full year 2014 revenues to grow between 8% and 11%, up from its previous forecast of growth of between 6% and 10%, due largely to improving demand in North America. EBIT is expected to be in the range of 12.75 to 13.25 percent of sales.

Other recent highlights:

• The Company named Rich Freeland as President and Chief Operating Officer

• Cummins was named 2013 Powertrain Supplier of the Year by Chrysler Group

• The Company was ranked among the World’s Best in Newsweek’s 2014 Green Rankings for our continuous efforts to reduce our environmental footprint and make a positive impact on the environment

• For the ninth straight year Cummins was awarded a perfect score by the Human Rights Campaign Foundation (HRC) in the 2014 Corporate Quality Index as part of HRC’s Best Place to Work Initiative

Second quarter 2014 detail (all comparisons to same period in 2013)

Engine Segment

• Sales - $2.7 billion, up 3 percent

• Segment EBIT - $311 million, or 11.3 percent of sales, compared to $339 million or 12.8 percent of sales

• Increased demand in on-highway markets in North America offset weakness in global power generation and the Brazilian truck market

Components Segment

• Sales - $1.3 billion, up 15 percent

• Segment EBIT - $185 million, or 14.5 percent of sales, compared to $136 million or 12.2 percent of sales

• Higher demand in on-highway markets in North America, Europe and China more than offset weaker demand in Brazil

Power Generation Segment

• Sales - $743 million, down 9 percent

• Segment EBIT - $61 million, or 8.2 percent of sales, compared to $76 million or 9.3 percent of sales

• Lower revenues in most markets particularly North America, Asia Pacific and Middle East offset stronger demand in China and Africa

Distribution Segment

• Sales - $1.2 billion, up 30 percent overall and up 2 percent excluding acquisitions

• Segment EBIT - $126 million, or 10.2 percent of sales, compared to $100 million or 10.5 percent of sales

• Higher revenues were primarily driven by acquisitions and stronger demand in North America and Africa.

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 48,000 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 6,800 dealer locations. Cummins earned $1.48 billion on sales

of $17.3 billion in 2013. 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 2014. 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 2013 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.