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 gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.