Cummins Aug 2017

Table of Contents

  1. 01
    Cummins Overview
  2. 02
    Executive Summary
  3. 03
    OPERATING RESULTS
    • Sales Analysis
    • Engine Business
    • Employment
    • Manufacturing
    • Marketing and Distribution
    • Corporate Leadership
    • Research and Development
  4. 04
    Corporate Strategy
  5. 05
    PRODUCT ANALYSIS
  6. 05.1
    Engine Business
    • Off-Highway Engines
    • On-Highway Engines
    • Power Generation Business
    • Component Systems
  7. 05.2
    Distribution
    • Distribution Revenue
    • Component Geo-Sales

Executive Summary

Cummins Engine is the largest supplier of engines for the on-highway truck and off-highway machinery markets. The company designs, manufactures, distributes and services diesel and natural gas engines and electric power generation systems. It participates in markets for engine-related parts and components, such as filtration, aftertreatment, turbochargers, fuel systems, controls systems, and air handling systems. Cummins sells to original equipment manufacturers (OEMs), distributors and customers throughout the world. It has had long-standing relationships with leading manufacturers such as PACCAR Inc., Daimler Trucks North America, Navistar International Corporation, and Fiat Chrysler. Products are sold through a network of roughly 600 exclusively-owned and independent distributor locations and over 7,000 other dealer locations throughout most (over 190 countries and territories) of the globe.

In the second quarter of 2016, Cummins restructured its reportable segments. While the company kept three reporting segments—Engine, Distribution, and Components—the fourth, formerly known as Power Generation, was reorganized. Cummins combined Power Generation with its high-horsepower engine business into Power Systems, the current fourth segment. Management claims that Power Generation and the high horsepower engine business were essentially independent. The combination will allow Cummins to streamline business and technical expertise, while fostering innovation, increasing market share, and managing the supply chain and manufacturing applications more productively. The four reporting segments are often interconnected and share technology, brands, partners, customers, and distributors. 

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