Cummins Inc. last week revised its previously announced fourth-quarter and full-year 2012 operating results to reflect information learned in February related to certain legal matters. The revisions were made to reflect a post-period increase to the company’s contingent legal reserves for a recent adverse court ruling in a commercial contract dispute.
As a result of the new information, Earnings Before Interest and Taxes for the fourth quarter and the full year decreased by $20 million, while net income attributable to Cummins was reduced by $12 million, or $0.07 per diluted share. This matter does not alter operating segment results as previously reported.
The company’s revised fourth-quarter EBIT was $532 million excluding $52 million of restructuring costs. Net income attributable to Cummins was $369 million, or $1.95 cents per diluted share, including $0.19 per diluted share of restructuring costs and one-time tax benefits of $0.21 per diluted share.
For the full year, the company’s revised EBIT, excluding special items, was $2.35 billion or 13.6 percent of sales compared to $2.6 billion or 14.2 percent of sales in 2011.
Net income for the full year 2012 was $1.65 billion ($8.67 per diluted share) down from $1.85 billion ($9.55 per diluted share) in 2011. Excluding the costs of restructuring ($0.18 per diluted share), and the gain on the sale of the exhaust business ($0.02 per diluted share), the company reported net income for 2012 of $1.68 billion ($8.83 per diluted share).
Cummins Inc. designs, manufactures, distributes and services diesel and natural gasand related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical systems.