Cummins Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Cummins Inc. filed its Q1 2024 10-Q report, detailing financial performance and position as of March 31, 2024.</b>

AI Summary

CUMMINS INC (CMI) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Cummins Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of the fiscal year 2024. The company's fiscal year ends on December 31st. Cummins Inc. is incorporated in Indiana. The company's primary business is in Engines & Turbines (SIC 3510).

Why It Matters

For investors and stakeholders tracking CUMMINS INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial data for Cummins Inc., crucial for assessing the company's performance and making informed investment decisions. Understanding the detailed financial statements and disclosures in this report is essential for tracking Cummins' progress against its strategic goals and market conditions in the Engines & Turbines sector.

Risk Assessment

Risk Level: low — CUMMINS INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant deviations from typical reporting, indicating a low level of immediate risk.

Analyst Insight

Review the detailed financial statements within the 10-Q to identify any specific trends in revenue, expenses, or balance sheet items that may impact future performance.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-02 — Filing Date (Filed as of Date)
• 2024-01-01 — Quarter Start Date (First quarter of fiscal year 2024)
• 1231 — Fiscal Year End (Fiscal Year End)

Key Players & Entities

• CUMMINS INC (company) — Filer name
• 0000026172 (company) — Central Index Key
• 3510 (industry) — Standard Industrial Classification for Engines & Turbines
• IN (location) — State of Incorporation
• 2024-03-31 (date) — Conformed Period of Report
• 2024-05-02 (date) — Filed as of Date
• CUMMINS ENGINE CO INC (company) — Former Company Name
• 1992-07-03 (date) — Date of Name Change

FAQ

Industry Context

Cummins Inc. operates in the Engines & Turbines industry, a sector focused on the manufacturing and sale of engines and related power generation equipment.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the balance sheet for changes in assets, liabilities, and equity from the previous quarter.
2. Examine the statement of operations for revenue and net income trends during Q1 2024.
3. Review any footnotes or disclosures for specific details on accounting policies or significant events.

Key Dates

• 2024-03-31: Quarter End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-02: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 10-K annual report.

Key Financial Figures

• $2.50 — ange on which registered Common stock, $2.50 par value CMI New York Stock Exchange

Filing Documents

• cmi-20240331.htm (10-Q) — 1902KB
• cmi2024q110-qex10.htm (EX-10) — 30KB
• cmi2024q110-qex31a.htm (EX-31.A) — 10KB
• cmi2024q110-qex31b.htm (EX-31.B) — 10KB
• cmi2024q110-qex32.htm (EX-32) — 6KB
• cmi-20240331_g1.jpg (GRAPHIC) — 114KB
• 0000026172-24-000023.txt (&nbsp;) — 9770KB
• cmi-20240331.xsd (EX-101.SCH) — 42KB
• cmi-20240331_cal.xml (EX-101.CAL) — 76KB
• cmi-20240331_def.xml (EX-101.DEF) — 241KB
• cmi-20240331_lab.xml (EX-101.LAB) — 679KB
• cmi-20240331_pre.xml (EX-101.PRE) — 460KB
• cmi-20240331_htm.xml (XML) — 1714KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1. Condensed Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Statements of Net Income for the three months ended March 31, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 4 Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 6 Condensed Consolidated Statements of Changes in Redeemable Noncontrolling Interests and Equity for the three months ended March 31, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 8 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 ITEM 4.

Controls and Procedures

Controls and Procedures 45

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 45 ITEM 1A.

Risk Factors

Risk Factors 45 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 ITEM 3. Defaults Upon Senior Securities 46 ITEM 4. Mine Safety Disclosures 46 ITEM 5. Other Information 46 ITEM 6. Exhibits 47

Signatures

Signatures 48 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements

ITEM 1. Condensed Consolidated Financial Statements CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) Three months ended March 31, In millions, except per share amounts 2024 2023 NET SALES (Notes 1 and 2) $ 8,403 $ 8,453 Cost of sales 6,362 6,424 GROSS MARGIN 2,041 2,029 OPERATING EXPENSES AND INCOME Selling, general and administrative expenses 839 753 Research, development and engineering expenses 369 350 Equity, royalty and interest income from investees (Note 4) 123 119 Other operating expense, net 33 19 OPERATING INCOME 923 1,026 Interest expense 89 87 Other income, net (Note 14) 1,387 90 INCOME BEFORE INCOME TAXES 2,221 1,029 Income tax expense (Note 5) 193 223 CONSOLIDATED NET INCOME 2,028 806 Less: Net income attributable to noncontrolling interests 35 16 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 1,993 $ 790 EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. Basic $ 14.10 $ 5.58 Diluted $ 14.03 $ 5.55 WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING Basic 141.3 141.5 Dilutive effect of stock compensation awards 0.8 0.9 Diluted 142.1 142.4 The accompanying notes are an integral part of the Condensed Consolidated Financial Statements. 3 Table of Contents CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three months ended March 31, In millions 2024 2023 CONSOLIDATED NET INCOME $ 2,028 $ 806 Other comprehensive (loss) income, net of tax (Note 12) Change in pension and other postretirement defined benefit plans ( 13 ) ( 9 ) Foreign currency translation adjustments ( 60 ) 82 Unrealized gain (loss) on derivatives 12 ( 3 ) Total other comprehensive (loss) income, net of tax ( 61 ) 70 COMPREHENSIVE INCOME 1,967 876 Less: Comprehensive income attributable to noncontrolling interests 32 19 COMPREHENSIVE INCOME ATTRIBUTABLE TO CUMMINS INC. $ 1,935 $ 857 The accompanying notes are an integral part of the Condensed Consoli