Businessweek

Cummins Inc. 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 sells its products to original equipment manufacturers (OEMs), distributors, and other customers worldwide. It serves its customers through a network of approximately 600 company-owned and independent distributor locations, and approximately 6,500 dealer locations in approximately 190 countries and territories. Segments The company operates through four segments: Engine, Components, Power Generation, and Distribution. Engine This 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, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. The company offers various engine products, including engines with a displacement range of 2.8 to 91 liters and horsepower ranging from 48 to 3,500; new parts and service, as well as remanufactured parts and engines, through its distribution network; and the newly developed light-duty diesel engine, which would be sold through the light construction vehicle, pick-up, bus, and certain medium-duty truck markets. Heavy-Duty Truck: The company manufactures diesel engines that range from 310 to 620 horsepower serving global heavy-duty truck customers worldwide. Medium-Duty Truck and Bus: The company manufactures medium-duty diesel engines ranging from 150 to 400 horsepower serving medium-duty and inter-city delivery truck customers worldwide, with primary markets, including North America, Latin America, Europe, and Mexico. It also provides diesel or natural gas engines for school buses, transit buses, and shuttle buses worldwide, with primary markets, including North America, Europe, Latin America, and Asia. Light-Duty Automotive and RV: The company manufactures 320 to 385 horsepower diesel engines for Chrysler's heavy-duty chassis cab and pickup trucks and 300 to 600 horsepower diesel engines for Class A motor homes (RVs), primarily in North America. Industrial: The company provides mid-range, heavy-duty, and high-horsepower engines that range from 31 to 3,500 horsepower for various equipment in the construction, agricultural, mining, rail, government, oil and gas, power generation, and commercial and recreational marine applications worldwide. Across these markets, it has major customers in North America, Europe/the Middle East/Africa, China, Korea, Japan, Latin America, India, Russia, Southeast Asia, South Pacific, and Mexico. Customers: The principal customers of the company’s heavy- and medium-duty truck engines include truck manufacturers, such as PACCAR Inc (PACCAR); Daimler Trucks North America (Daimler); Ford Motor Company; International Truck; MAN Latin America; and Volvo. It sells its industrial engines to manufacturers of construction, agricultural, and marine equipment, including Komatsu, Belaz, Hyundai, Hitachi, and JLG. The principal customers of its light-duty on-highway engines include Chrysler and manufacturers of RVs. Competition: The company’s primary competitors in North America include International Truck and Engine Corporation (Engine Division); Detroit Diesel Corporation; Caterpillar Inc. (CAT); Volvo Powertrain; Ford Motor Company; and Hino Power. Components This segment supplies products, which complement the company’s Engine segment, including filtration products, turbochargers, aftertreatment systems, and fuel systems for commercial diesel applications. The company manufactures filtration systems for on- and off-highway heavy-duty and mid-range equipment. It also supplies filtration products for industrial and passenger car applications. In addition, it develops aftertreatment systems and turbochargers to help its customers meet emission standards and fuel systems, which have primarily supplied its Engine se