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 31, 2017

  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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging growth Company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o

1

Item 2.02. Results of Operations and Financial Condition.

On October 31, 2017, Cummins Inc. (“Cummins,” “the Company,” “the registrant,” “we,” “our,” or “us”) issued the attached press release reporting its financial results for the third quarterof 2017, 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 October 31, 2017

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 31, 2017

CUMMINS INC.

 /s/ CHRISTOPHER C. CLULOW

Christopher C. Clulow

Vice President - Corporate Controller
(Principal Accounting Officer)

2

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (a)

	Three months ended
In millions, except per share amounts	October 1, 2017		October 2, 2016
NET SALES	$	5,285	$	4,187
Cost of sales	3,946		3,108
GROSS MARGIN	1,339		1,079
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	624		513
Research, development and engineering expenses	213		157
Equity, royalty and interest income from investees	95		74
Loss contingency	—		99
Other operating income (expense), net	32		—
OPERATING INCOME	629		384
Interest income	4		6
Interest expense	18		16
Other income (expense), net	7		8
INCOME BEFORE INCOME TAXES	622		382
Income tax expense	165		82
CONSOLIDATED NET INCOME	457		300
Less: Net income attributable to noncontrolling interests	4		11
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	453	$	289
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	2.72	$	1.72
Diluted	$	2.71	$	1.72
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	166.3		167.8
Diluted	167.0		168.2
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	1.08	$	1.025
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

3

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (a)

	Nine months ended
In millions, except per share amounts	October 1, 2017		October 2, 2016
NET SALES	$	14,952	$	13,006
Cost of sales	11,236		9,674
GROSS MARGIN	3,716		3,332
OPERATING EXPENSES AND INCOME
Selling, general and administrative expenses	1,757		1,527
Research, development and engineering expenses	545		478
Equity, royalty and interest income from investees	301		234
Loss contingency	—		138
Other operating income (expense), net	55		(2		)
OPERATING INCOME	1,770		1,421
Interest income	11		18
Interest expense	57		51
Other income (expense), net	45		34
INCOME BEFORE INCOME TAXES	1,769		1,422
Income tax expense	466		362
CONSOLIDATED NET INCOME	1,303		1,060
Less: Net income attributable to noncontrolling interests	30		44
NET INCOME ATTRIBUTABLE TO CUMMINS INC.	$	1,273	$	1,016
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.
Basic	$	7.62	$	5.99
Diluted	$	7.60	$	5.99
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	167.0		169.5
Diluted	167.6		169.7
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	3.13	$	2.975
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

4

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (a)

In millions, except par value	October 1, 2017			December 31, 2016
ASSETS
Current assets
Cash and cash equivalents	$	1,290		$	1,120
Marketable securities	154			260
Total cash, cash equivalents and marketable securities	1,444			1,380
Accounts and notes receivable, net	3,810			3,025
Inventories	3,146			2,675
Prepaid expenses and other current assets	656			627
Total current assets	9,056			7,707
Long-term assets
Property, plant and equipment	7,901			7,635
Accumulated depreciation	(4,085		)	(3,835		)
Property, plant and equipment, net	3,816			3,800
Investments and advances related to equity method investees	1,213			946
Goodwill	1,036			480
Other intangible assets, net	964			332
Pension assets	912			731
Other assets	995			1,015
Total assets	$	17,992		$	15,011
LIABILITIES
Current liabilities
Accounts payable (principally trade)	$	2,486		$	1,854
Loans payable	64			41
Commercial paper	514			212
Accrued compensation, benefits and retirement costs	674			412
Current portion of accrued product warranty	462			333
Current portion of deferred revenue	528			468
Other accrued expenses	968			970
Current maturities of long-term debt	62			35
Total current liabilities	5,758			4,325
Long-term liabilities
Long-term debt	1,615			1,568
Postretirement benefits other than pensions	319			329
Pensions	328			326
Other liabilities and deferred revenue	1,411			1,289
Total liabilities	$	9,431		$	7,837
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares authorized, 222.4 and 222.4 shares issued	$	2,198		$	2,153
Retained earnings	11,791			11,040
Treasury stock, at cost, 56.4 and 54.2 shares	(4,849		)	(4,489		)
Common stock held by employee benefits trust, at cost, 0.6 and 0.7 shares	(7		)	(8		)
Accumulated other comprehensive loss	(1,504		)	(1,821		)
Total Cummins Inc. shareholders’ equity	7,629			6,875
Noncontrolling interests	932			299
Total equity	$	8,561		$	7,174
Total liabilities and equity	$	17,992		$	15,011
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

5

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (a)

	Nine months ended
In millions	October 1, 2017			October 2, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$	1,303		$	1,060
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization	433			391
Deferred income taxes	26			60
Equity in income of investees, net of dividends	(166		)	(94		)
Pension contributions in excess of expense	(63		)	(92		)
Other post retirement benefits payments in excess of expense	(4		)	(16		)
Stock-based compensation expense	34			28
Restructuring payments	—			(53		)
Loss contingency	—			138
Translation and hedging activities	61			(39		)
Changes in current assets and liabilities, net of acquisitions
Accounts and notes receivable	(722		)	(112		)
Inventories	(401		)	(150		)
Other current assets	(28		)	138
Accounts payable	567			101
Accrued expenses	369			(279		)
Changes in other liabilities and deferred revenue	177			188
Other, net	(115		)	45
Net cash provided by operating activities	1,471			1,314
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(282		)	(312		)
Investments in internal use software	(59		)	(42		)
Proceeds from disposals of property, plant and equipment	104			11
Investments in and advances to equity investees	(71		)	(29		)
Acquisitions of businesses, net of cash acquired	(600		)	(1		)
Investments in marketable securities—acquisitions	(106		)	(447		)
Investments in marketable securities—liquidations	218			291
Cash flows from derivatives not designated as hedges	9			(64		)
Other, net	1			3
Net cash used in investing activities	(786		)	(590		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	4			111
Net borrowings of commercial paper	302			273
Payments on borrowings and capital lease obligations	(38		)	(156		)
Net borrowings under short-term credit agreements	19			25
Distributions to noncontrolling interests	(29		)	(42		)
Dividend payments on common stock	(522		)	(505		)
Repurchases of common stock	(391		)	(745		)
Other, net	55			(6		)
Net cash used in financing activities	(600		)	(1,045		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	85			(139		)
Net increase (decrease) in cash and cash equivalents	170			(460		)
Cash and cash equivalents at beginning of year	1,120			1,711
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1,290		$	1,251
(a)  Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

6

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

		In millions	Engine			Distribution			Components(1)			Power Systems			Total Segment			Intersegment Eliminations (2)			Total
		Three months ended October 1, 2017
		External sales	$	1,783		$	1,748		$	1,139		$	615		$	5,285		$	—		$	5,285
		Intersegment sales	553			5			394			441			1,393			(1,393		)	—
		Total sales	2,336			1,753			1,533			1,056			6,678			(1,393		)	5,285
		Depreciation and amortization (3)	47			29			42			30			148			—			148
		Research, development and engineering expenses	83			6			63			61			213			—			213
		Equity, royalty and interest income from investees	58			11			12			14			95			—			95
		Interest income	1			2			—			1			4			—			4
		EBIT	229			91			217			81			618			22			640
		EBIT as a percentage of total sales	9.8		%	5.2		%	14.2		%	7.7		%	9.3		%				12.1		%
		Three months ended October 2, 2016
		External sales	$	1,357		$	1,497		$	824		$	509		$	4,187		$	—		$	4,187
		Intersegment sales	502			7			319			347			1,175			(1,175		)	—
		Total sales	1,859			1,504			1,143			856			5,362			(1,175		)	4,187
		Depreciation and amortization (3)	42			28			32			29			131			—			131
		Research, development and engineering expenses	56			3			54			44			157			—			157
		Equity, royalty and interest income from investees	38			19			9			8			74			—			74
		Loss contingency	99			—			—			—			99			—			99
		Interest income	3			1			1			1			6			—			6
		EBIT	89			96			148			59			392			6			398
		EBIT as a percentage of total sales	4.8		%	6.4		%	12.9		%	6.9		%	7.3		%				9.5		%
(1	)	The 2017 disclosures include Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. See "ACQUISITION," footnote for additional information.
(2	)	Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended October 1, 2017 and October 2, 2016.
(3	)	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."

7

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

		In millions	Engine			Distribution			Components(1)			Power Systems			Total Segment			Intersegment Eliminations (2)			Total
		Nine months ended October 1, 2017
		External sales	$	4,951		$	5,101		$	3,183		$	1,717		$	14,952		$	—		$	14,952
		Intersegment sales	1,715			19			1,148			1,238			4,120			(4,120		)	—
		Total sales	6,666			5,120			4,331			2,955			19,072			(4,120		)	14,952
		Depreciation and amortization (3)	137			90			117			87			431			—			431
		Research, development and engineering expenses	200			14			170			161			545			—			545
		Equity, royalty and interest income from investees	186			35			40			40			301			—			301
		Interest income	4			4			1			2			11			—			11
		EBIT	735			287			586			199			1,807			19			1,826
		EBIT as a percentage of total sales	11.0		%	5.6		%	13.5		%	6.7		%	9.5		%				12.2		%
		Nine months ended October 2, 2016
		External sales	$	4,350		$	4,493		$	2,654		$	1,509		$	13,006		$	—		$	13,006
		Intersegment sales	1,487			18			1,005			1,076			3,586			(3,586		)	—
		Total sales	5,837			4,511			3,659			2,585			16,592			(3,586		)	13,006
		Depreciation and amortization (3)	122			85			95			87			389			—			389
		Research, development and engineering expenses	166			10			161			141			478			—			478
		Equity, royalty and interest income from investees	120			56			29			29			234			—			234
		Loss contingency	138			—			—			—			138			—			138
		Interest income	8			3			3			4			18			—			18
		EBIT	492			270			501			195			1,458			15			1,473
		EBIT as a percentage of total sales	8.4		%	6.0		%	13.7		%	7.5		%	8.8		%				11.3		%
(1	)	The 2017 disclosures include Eaton Cummins Automated Transmission Technologies joint venture results consolidated during the third quarter of 2017. See "ACQUISITION," footnote for additional information.
(2	)	Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the nine months ended October 1, 2017 and October 2, 2016.
(3	)	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." The amortization of debt discount and deferred costs was $2 million for both of the nine months ended October 1, 2017 and October 2, 2016.

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	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
Total EBIT	$	640	$	398	$	1,826	$	1,473
Less: Interest expense	18		16		57		51
Income before income taxes	$	622	$	382	$	1,769	$	1,422

8

CUMMINS INC. AND SUBSIDIARIES

SELECT FOOTNOTE DATA

(Unaudited)

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					Nine months ended
In millions	October 1, 2017			October 2, 2016		October 1, 2017			October 2, 2016
Distribution entities
Komatsu Cummins Chile, Ltda.	$	8		$	8	$	23		$	26
North American distributors	—			7		—			18
All other distributors	(1		)	1		(1		)	2
Manufacturing entities
Beijing Foton Cummins Engine Co., Ltd.	24			19		79			59
Dongfeng Cummins Engine Company, Ltd.	15			10		56			32
Chongqing Cummins Engine Company, Ltd.	11			11		30			28
All other manufacturers	27			8		78			40
Cummins share of net income	84			64		265			205
Royalty and interest income	11			10		36			29
Equity, royalty and interest income from investees	$	95		$	74	$	301		$	234

ACQUISITION

In April 2017, we entered into an agreement to form a joint venture with Eaton Corporation PLC (Eaton), which closed on July 31, 2017 (the acquisition date). We purchased a 50 percent interest in the new venture named Eaton Cummins Automated Transmission Technologies for $600 million in cash. In addition, each partner contributed $20 millionfor working capital. The joint venture will design, assemble, sell and support medium-duty and heavy-duty automated transmissions for the commercial vehicle market, including new product launches.We consolidated the results of the joint venture in our Components segment as we have a majority voting interest in the venture by virtue of a tie-breaking vote on the joint venture's board of directors.We do not expect this new venture to have a significant impact on our consolidated results in 2017.

ENGINE SYSTEM LOSS CONTINGENCY

During 2017, the CARB and U.S. EPA began selecting certain of our pre-2013 model year engine systems for additional emissions testing.  We have been notified that a portion of the CARB and EPA selected engine systems have failed emissions testing due to the unexpected degradation of an aftertreatment component.  Although we have no official notice from the CARB or EPA on these engine systems to date, we are working with the agencies on a resolution of these matters.  We are developing and testing solutions to address the technical issues, which could include a combination of calibration changes, service practices and hardware changes.  We recorded a charge of $29 millionto "cost of sales" in our Condensed Consolidated Statements of Income in the third quarter of 2017 for the expected cost of field campaigns to repair some of these engine systems.

In addition, we are currently evaluating other engine systems for model years 2010 through 2015 that could potentially be subject to similar degradation issues.  At this point in time, we have not yet determined the impact to other model years and engine systems or the percentage of the engine system populations affected.

Because this remains under review with a number of yet unresolved variables, we are not yet able to estimate the outcome for these matters. It is possible, however, that they could have a material effect on our results of operations in the periods in which the uncertainties are resolved.

We do not currently expect any fines or penalties from the EPA or CARB related to this matter.

9

CUMMINS INC. AND SUBSIDIARIES

SELECTED FOOTNOTE DATA

(Unaudited)

SUBSEQUENT EVENT

On October 12, 2017, we entered into an asset purchase agreementwith Brammo Inc., an engineer and manufacturer of lithium ion batteries primarily related to the utility vehicle markets, for approximately$70 million to be paid in cash at closing.  In addition to the closing consideration, the agreement contains an earnout based on future results of the acquired business, which could result in a maximum additional $100 million payment to the former owners. The majority of the purchase price will likely be assigned to intangible assets and goodwill. We expect the transaction to close in the fourth quarter of 2017.

10

CUMMINS INC. AND SUBSIDIARIES

FINANCIAL MEASURES THAT SUPPLEMENT GAAP

(Unaudited)

Earnings before interest, income taxes and noncontrolling interests

We define EBIT as earnings before interest expense, income tax expense and noncontrolling interests in income of consolidated subsidiaries. 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 and may not be consistent with measures used by other companies. It should be considered supplemental data. Below is a reconciliation of “Net income attributable to Cummins Inc.” to EBIT for each of the applicable periods:

	Three months ended						Nine months ended
In millions	October 1, 2017			October 2, 2016			October 1, 2017			October 2, 2016
Net income attributable to Cummins Inc.	$	453		$	289		$	1,273		$	1,016
Net income attributable to Cummins Inc. as a percentage of net sales	8.6		%	6.9		%	8.5		%	7.8		%
Add
Net income attributable to noncontrolling interests	4			11			30			44
Consolidated net income	457			300			1,303			1,060
Add
Interest expense	18			16			57			51
Income tax expense	165			82			466			362
Earnings before interest expense and income taxes	$	640		$	398		$	1,826		$	1,473
EBIT as a percentage of net sales	12.1		%	9.5		%	12.2		%	11.3		%

11

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Engine Segment Sales by Market and Unit Shipments by Engine Classification

Sales for our Engine segment by market were as follows:

2017
In millions	Q1		Q2		Q3		Q4		YTD
Heavy-duty truck	$	620	$	714	$	776	$	—	$	2,110
Medium-duty truck and bus	544		701		625		—		1,870
Light-duty automotive	423		429		452		—		1,304
Off-highway	436		463		483		—		1,382
Total sales	$	2,023	$	2,307	$	2,336	$	—	$	6,666
2016
In millions	Q1		Q2		Q3		Q4		YTD
Heavy-duty truck	$	631	$	622	$	625	$	565	$	2,443
Medium-duty truck and bus	549		600		517		606		2,272
Light-duty automotive	433		394		345		409		1,581
Off-highway	363		386		372		387		1,508
Total sales	$	1,976	$	2,002	$	1,859	$	1,967	$	7,804

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:

2017
Units	Q1	Q2	Q3	Q4	YTD
Heavy-duty	19,200	24,100	28,100	—	71,400
Medium-duty	60,300	71,600	68,500	—	200,400
Light-duty	63,100	65,600	66,300	—	195,000
Total units	142,600	161,300	162,900	—	466,800
2016
Units	Q1	Q2	Q3	Q4	YTD
Heavy-duty	19,700	20,700	20,100	18,500	79,000
Medium-duty	55,400	62,300	53,400	58,000	229,100
Light-duty	61,700	57,100	49,800	60,000	228,600
Total units	136,800	140,100	123,300	136,500	536,700

12

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Distribution Segment Sales by Product Line

Sales for our Distribution segment by product line were as follows:

2017
In millions	Q1		Q2		Q3		Q4		YTD
Parts	$	745	$	759	$	768	$	—	$	2,272
Service	319		320		326		—		965
Power generation	306		329		317		—		952
Engines	275		314		342		—		931
Total sales	$	1,645	$	1,722	$	1,753	$	—	$	5,120
2016
In millions	Q1		Q2		Q3		Q4		YTD
Parts	$	648	$	642	$	643	$	694	$	2,627
Service	299		297		299		320		1,215
Power generation	275		326		291		347		1,239
Engines	241		279		271		309		1,100
Total sales	$	1,463	$	1,544	$	1,504	$	1,670	$	6,181

Component Segment Sales by Business

In the first quarter of 2017, our Components segment reorganized its reporting structure to move an element of the emission solutions business to the fuel systems business to enhance operational, administrative and product development efficiencies. Prior year sales were reclassified to conform with this change.

In the third quarter of 2017, we completed the Eaton Cummins Automated Transmission Technologies joint venture (ECJV), which was consolidated and included in our Components segment as the automated transmissions business.

Sales for our Components segment by product line were as follows:

2017
In millions	Q1		Q2		Q3		Q4		YTD
Emission solutions	$	616	$	674	$	696	$	—	$	1,986
Turbo technologies	287		307		297		—		891
Filtration	277		291		287		—		855
Fuel systems	164		182		184		—		530
Automated transmissions	—		—		69		—		69
Total sales	$	1,344	$	1,454	$	1,533	$	—	$	4,331
2016
In millions	Q1		Q2		Q3		Q4		YTD
Emission solutions	$	589	$	603	$	522	$	524	$	2,238
Turbo technologies	265		276		241		254		1,036
Filtration	252		262		244		252		1,010
Fuel systems	131		138		136		147		552
Total sales	$	1,237	$	1,279	$	1,143	$	1,177	$	4,836
2015
In millions	YTD
Emission solutions	$	2,449
Turbo technologies	1,141
Filtration	1,010
Fuel systems	572
Total sales	$	5,172

13

CUMMINS INC. AND SUBSIDIARIES

BUSINESS UNIT SALES DATA

(Unaudited)

Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification

In the first quarter of 2017, our Power Systems segment reorganized its product lines to better reflect how the segment is managed. Prior year sales were reclassified to reflect these changes.

Sales for our Power Systems segment by product line were as follows:

2017
In millions	Q1		Q2		Q3		Q4		YTD
Power generation	$	526	$	570	$	580	$	—	$	1,676
Industrial	275		353		385		—		1,013
Generator technologies	81		94		91		—		266
Total sales	$	882	$	1,017	$	1,056	$	—	$	2,955
2016
In millions	Q1		Q2		Q3		Q4		YTD
Power generation	$	518	$	602	$	543	$	593	$	2,256
Industrial	215		236		235		255		941
Generator technologies	75		83		78		84		320
Total sales	$	808	$	921	$	856	$	932	$	3,517
2015
In millions	YTD
Power generation	$	2,588
Industrial	1,121
Generator technologies	358
Total sales	$	4,067

High-horsepower unit shipments by engine classification were as follows: 

2017
Units	Q1	Q2	Q3	Q4	YTD
Power generation	1,900	2,100	2,200	—	6,200
Industrial	1,300	1,700	1,600	—	4,600
Total units	3,200	3,800	3,800	—	10,800
2016
Units	Q1	Q2	Q3	Q4	YTD
Power generation	1,800	2,200	2,000	1,900	7,900
Industrial	1,000	1,100	1,000	1,300	4,400
Total units	2,800	3,300	3,000	3,200	12,300

14

EX-99

For Immediate Release

October 31, 2017

Cummins Reports Third Quarter 2017 Results

• Third quarter revenues of $5.3 billion, GAAP¹ Net Income of $453 million

• EBIT of 12.1% of sales, Diluted EPS of $2.71

• Cummins expects full-year 2017 revenues to be up 14% to 15%

• EBIT is expected to be in the range of 11.8% to 12.2%

COLUMBUS, IND. - Cummins Inc. (NYSE: CMI) today reported results for the third quarter of 2017.

Third quarter revenues of $5.3 billion increased 26% from the same quarter in 2016. Revenues in North America increased 25% due to higher demand in truck, oil and gas and construction markets. International sales grew 28% primarily due to strong truck and construction demand in China, sales of new products in India and increased demand from global mining customers.

Net income attributable to Cummins in the third quarter was $453 million, or $2.71 per diluted share, compared to $289 million, or $1.72 per diluted share. The tax rate in the third quarter of 2017 was 26.5%.

Earnings before interest and taxes (EBIT) was $640 million, or 12.1% of sales, an increase from $398 million, or 9.5% of sales, a year ago.

“Cummins experienced positive momentum in demand in a number of important markets, resulting in strong sales growth in the third quarter,” said Chairman and CEO Tom Linebarger. “Earnings improved over the year-ago period due to stronger volumes and operational improvements that more than offset increased quality costs. Year to date, we have returned $913 million to shareholders in the form of dividends and share repurchases consistent with our plan to return 50% of Operating Cash Flow in 2017.”

Outlook

Based on its current forecast, Cummins expects full-year 2017 revenues to grow 14% to 15%, an increase from the company’s previous projection of 9% to 11% growth. EBIT is expected to be in the range of 11.8% to 12.2% of sales, which is unchanged from the prior guidance except for the inclusion of the impact of the new Eaton Cummins Automated Transmission Technologies joint venture. The joint venture, which is consolidated within the Components segment, is expected to report 2017 sales of approximately $150 million and negative EBIT of $25 million due in part to the amortization of intangible assets.

Third quarter 2017 highlights:

• The Company entered into an asset purchase agreement with Brammo, Inc., which designs and develops battery packs for mobile and stationary applications. When complete, this will be an important milestone in Cummins’ efforts to become a global electrified power leader.

• The Eaton Cummins Automated Transmission Technologies joint venture became fully operational on schedule on August 1^st. The joint venture will capitalize on the secular shift to more automated transmissions in commercial vehicle markets.

Third quarter 2017 detail (all comparisons to same period in 2016)

Engine Segment

• Sales - $2.3 billion, up 26%

• Segment EBIT - $229 million, or 9.8% of sales, compared to $89 million or 4.8% of sales

• EBIT includes a $63 million warranty charge related to a quality campaign

• On-highway revenues increased by 25%, and off-highway revenues increased 30% primarily due to increased demand globally in truck and construction markets

Distribution Segment

• Sales - $1.8 billion, up 17%

• Segment EBIT - $91 million, or 5.2% of sales, compared to $96 million or 6.4% of sales

• Organic sales increased 12% due to improved sales to off-highway markets

• The impact of acquisitions and the disposal of power generation rental assets in North America resulted in a net percent increase in revenues

Components Segment

• Sales - $1.5 billion, up 34%.

• Segment EBIT - $217 million , or 14.2% of sales, compared to $148 million or 12.9% of sales

• International revenue increased 45%, primarily due to higher truck demand in China and the sale of new products in India

• Sales in North America increased 26% due to stronger orders from on-highway customers

Power Systems Segment

• Sales - $1.1 billion, up 23%

• Segment EBIT - $81 million, or 7.7% of sales, compared to $59 million, or 6.9% of sales

• Increased demand for industrial engines from mining and oil & gas customers was the main contributor to the revenue growth

¹ Generally Accepted Accounting Principles

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 55,400 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 7,400 dealer locations. Cummins earned $1.39 billion on sales of $17.5 billion in 2016. Press releases can be found on the Web at www.cummins.com. Follow Cummins on Twitter at www.twittter.com/cummins and on YouTube at www.youtube.com/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 2017. 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 2016 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.

Contact:

Carole Casto

Vice President - Marketing and Communications

(317) 610-2480

carole.casto@cummins.com