Cummins Inc. (CMI)

Cummins Inc., incorporated on February 3, 1919, designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems. The Company's segments include Engine, Distribution, Components and Power Systems. The Company sells its products to original equipment manufacturers (OEMs), distributors and other customers around the world. As of December 31, 2016, the Company served its customers through a network of approximately 600 distributor locations and over 7,400 dealer locations in over 190 countries and territories.

Engine Segment

The Company's Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive, construction, mining, marine, rail, oil and gas, defense and agricultural markets. The Company manufactures a range of engine products, including engines with a displacement range of 2.8 to 15 liters and horsepower ranging from 48 to 715, and various parts and service, as well as remanufactured parts and engines, through its distribution network. The Company manufactures diesel and natural gas engines that range from 310 to 605 horsepower serving global heavy-duty truck customers around, primarily in North America, Latin America and Australia. The Company manufactures diesel and natural gas engines ranging from 130 to 450 horsepower serving medium-duty truck and bus customers around the world, with markets, including North America, Latin America, China, Europe and India. Its applications include pickup and delivery trucks, vocational truck, school bus, transit bus and shuttle bus. The Company also provides diesel engines for Class A motor homes, primarily in North America.

The Company manufactures 105 to 385 horsepower diesel engines, including engines for the pickup truck market in North America, and light commercial vehicle (LCV) markets in Europe, Latin America and Asia. The Company manufactures diesel engines that range from 48 to 715 horsepower to global markets, including mining, marine, rail, oil and gas, defense, agriculture and construction equipment and also to the power generation business for standby, mobile and distributed power generation solutions throughout the world. The Company sells its industrial engines to manufacturers of construction, agricultural and marine equipment.

Distribution Segment

As of December 31, 2016, the Company's Distribution segment included 36 owned and six joint venture distributors that serviced and distributed a range of products and services to end users at approximately 450 locations in over 80 distribution territories. The Distribution segment consists of the product lines, which service and/or distribute a range of products and services, including parts, engines, power generation and service. The Distribution segment is organized into geographic regions, including North and Central America; Asia Pacific; Europe, Commonwealth of Independent States (CIS) and China; Africa; Middle East; India, and South America. As of December 31, 2016, Asia Pacific consisted of six regional distributor organizations: South Pacific, Korea, Japan, Philippines, Malaysia and Singapore. The Company's distribution network consists of distributors, which provide parts and service to its customers. These full-service solutions include maintenance contracts, engineering services and integrated products. The Company's distributors also serve and develop dealers, predominantly OEM dealers, in their territories by providing new products, technical support, tools, training, parts and product information. The Distribution segment manages the performance and capabilities of the Company's independent distributors.

Components Segment

The Company's Components segment supplies products, including aftertreatment systems, turbochargers, filtration products and fuel systems for commercial diesel applications. The Company manufactures filtration systems for on and off-highway heavy-duty and mid-range equipment. The Company is a supplier of filtration products for industrial car applications. The Components segment consists of businesses, including Emission solutions, Turbo technologies, Filtration and Fuel systems.

The Company's emission solutions business is engaged in designing, manufacturing and integrating aftertreatment technology and solutions for the commercial on and off-highway light, medium, heavy-duty and high-horsepower engine markets. Aftertreatment is the mechanism used to convert engine emissions of criteria pollutants, such as particulate matter (PM), nitrogen oxides (NOx), carbon monoxide (CO) and unburned hydrocarbons (HC) into harmless emissions. The Company's products include custom engineering systems and integrated controls, oxidation catalysts, particulate filters, selective catalytic reduction systems and engineered components, including dosers and sensors. The Company's emission solutions business primarily serves markets in North America, Europe, China, Brazil, Russia, Australia and India. The Company serves both OEM first fit and retrofit customers. The turbo technologies business designs, manufactures and markets turbochargers for light-duty, mid-range, heavy-duty and high-horsepower diesel markets. The Company's turbo technologies business provides air handling technologies for engines, including variable geometry turbochargers. Its turbo technologies business primarily serves markets in North America, Europe, Asia and Brazil.

The Company's filtration business designs, manufactures and sells filters, coolant and chemical products. As of December 31, 2016, the Company's filtration business offered over 8,300 products for first fit and aftermarket applications, including air filters, fuel filters, fuel water separators, lube filters, hydraulic filters, coolants, fuel additives and other filtration systems to OEMs, dealers/distributors and end users. Its filtration business supports customer base in a diverse range of markets, including on-highway, off-highway segments, such as oil and gas, agriculture, mining, construction, power generation, marine and industrial markets. As of December 31, 2016, the Company produced and sold Fleetguard branded products in over 160 countries, including countries in North America, Europe, South America, Asia, Australia and Africa. Its fuel systems business designs and manufactures new and replacement fuel systems primarily for heavy-duty on-highway diesel engine applications and also remanufactures fuel systems.

Power Systems Segment

The Company's Power Systems segment consists of businesses, including Power generation, Industrial and Generator technologies. The Company designs, manufactures, sells and supports back-up and prime power generators ranging from 2 kilowatts to 3.5 megawatts, as well as controls, paralleling systems and transfer switches, for applications such as consumer, commercial, industrial, data centers, healthcare, telecommunications and waste water treatment plants. The Company also provides turnkey solutions for distributed generation and energy management applications using natural gas or biogas as a fuel. The Company also serves global rental accounts for diesel and gas generator sets. It designs, manufactures, sells and supports diesel and natural gas high-horsepower engines for a range of equipment in the mining, rail, defense, oil and gas and commercial marine applications throughout the world. It has customers in North America, Europe, the Middle East, Africa, China, Korea, Japan, Latin America, India, Russia, Southeast Asia, South Pacific and Mexico. It designs, manufactures, sells and supports alternating current (A/C) generator/alternator products for internal consumption and for external generator set assemblers. Its products are sold under the Stamford, AVK and Markon brands.

The Company competes with Daimler, Caterpillar Inc., Ford Motor Company, Hino Power, Weichai Power Co. Ltd., MAN Nutzfahrzeuge AG, Fiat Power Systems, Guangxi Yuchai Group, GE Jenbacher, Tognum AG, Volvo AB, Yanmar Co., Ltd., Deutz AG, Robert Bosch GmbH, Donaldson Company, Inc., Clarcor Inc., Mann+Hummel Group, Honeywell International, Borg-Warner, Tenneco Inc., Eberspacher Holding GmbH & Co. KG, Denso Corporation, MTU Friedrichshafen GmbH, Kohler Group, Generac, Mitsubishi, Marathon Electric and Meccalte.