Cummins Inc. Files 10-Q for Q2 2024

Ticker: CMI · Form: 10-Q · Filed: 2024-08-01T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

TL;DR

Cummins Q2 2024 10-Q filed. Financials look solid.

AI Summary

Cummins Inc. reported its second quarter 2024 financial results, ending June 30, 2024. The company's filing details its financial position and performance for the period. Specific financial figures and operational details are provided within the report.

Why It Matters

This 10-Q filing provides investors and analysts with crucial financial data for Cummins Inc., enabling informed decisions about the company's performance and future outlook.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240630, indicating the second quarter of 2024.

When was this 10-Q filing submitted to the SEC?

The filing was submitted on 20240801.

What is the Standard Industrial Classification for Cummins Inc.?

The SIC code listed is ENGINES & TURBINES [3510].

In which state is Cummins Inc. incorporated?

Cummins Inc. is incorporated in Indiana (IN).

What is the fiscal year end for Cummins Inc.?

The fiscal year end for Cummins Inc. is December 31 (1231).

Filing Stats: 4,971 words · 20 min read · ~17 pages · Grade level 14.8 · Accepted 2024-08-01 11:27:37

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1. Condensed Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Statements of Net Income for the three and six months ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 4 Condensed Consolidated Balance Sheets at June 30, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 6 Condensed Consolidated Statements of Changes in Redeemable Noncontrolling Interests and Equity for the three and six months ended June 30, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 9 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 30 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 ITEM 4.

Controls and Procedures

Controls and Procedures 51

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 51 ITEM 1A.

Risk Factors

Risk Factors 52 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 ITEM 3. Defaults Upon Senior Securities 53 ITEM 4. Mine Safety Disclosures 53 ITEM 5. Other Information 53 ITEM 6. Exhibits 53

Signatures

Signatures 54 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 Six months ended June 30, June 30, In millions, except per share amounts 2024 2023 2024 2023 NET SALES (Notes 1 and 2) $ 8,796 $ 8,638 $ 17,199 $ 17,091 Cost of sales 6,603 6,490 12,965 12,914 GROSS MARGIN 2,193 2,148 4,234 4,177 OPERATING EXPENSES AND INCOME Selling, general and administrative expenses 828 873 1,667 1,626 Research, development and engineering expenses 379 384 748 734 Equity, royalty and interest income from investees (Note 4) 103 133 226 252 Other operating expense, net 44 27 77 46 OPERATING INCOME 1,045 997 1,968 2,023 Interest expense 109 99 198 186 Other income, net (Note 14) 41 51 1,428 141 INCOME BEFORE INCOME TAXES 977 949 3,198 1,978 Income tax expense (Note 5) 225 212 418 435 CONSOLIDATED NET INCOME 752 737 2,780 1,543 Less: Net income attributable to noncontrolling interests 26 17 61 33 NET INCOME ATTRIBUTABLE TO CUMMINS INC. $ 726 $ 720 $ 2,719 $ 1,510 EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. Basic $ 5.30 $ 5.08 $ 19.53 $ 10.66 Diluted $ 5.26 $ 5.05 $ 19.42 $ 10.60 WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING Basic 137.1 141.7 139.2 141.6 Dilutive effect of stock compensation awards 0.8 0.8 0.8 0.9 Diluted 137.9 142.5 140.0 142.5 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 Six months ended June 30, June 30, In millions 2024 2023 2024 2023 CONSOLIDATED NET INCOME $ 752 $ 737 $ 2,780 $ 1,543 Other comprehensive (loss) income, net of tax (Note 12) Change in pension and other postretirement defined benefit plans 13 2 — ( 7 ) Foreign currency translation adjustments ( 83 ) ( 110 ) ( 143 ) ( 28 ) Unrealized (loss) gain on derivati

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