9:47 a.m. update
Cummins' stock opened lower this morning on Nasdaq, falling by $2.26 per share, or nearly 1.9 percent, in early trading to $116.11.
COLUMBUS, Ind. — Cummins Inc. announced today that it has revised its previously announced fourth quarter and full year 2012 operating results to reflect information learned in February related to certain legal matters, according to a company press release.
The revisions were made to reflect a post-period increase to Cummins' 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 earnings before interest and taxes 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, Cummins' revised earnings before interest and taxes, excluding special items, was $2.35 billion or 13.6 percent of sales compared to $2.6 billion or 14.2% 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).