Cummins Inc. Reports Miscalculation in Third Quarter Diluted Earnings Per Share; Does Not Impact Reported Profit After Taxes or Forward Guidance

    COLUMBUS, Ind.--Oct. 25, 2002--Today Cummins Inc. announced it discovered a miscalculation in the Company's reported third quarter diluted earnings per share. The correct amount is $0.96 per fully diluted share. This does not impact the reported $39 million profit after taxes, any other reported numbers for the Company, or any forward guidance.
    On October 17, 2002, Cummins reported third quarter earnings of $1.00 per fully diluted share. The actual third quarter fully diluted earnings per share is $0.96. Basic earnings per share of $1.03 remain unchanged. The Company discovered the miscalculation as it prepared its Form 10-Q for the third quarter, which is filed within 45 days after the end of the quarter.
    Earnings and cash flow guidance for the fourth quarter and full year 2002 remain as originally reported: Cummins expects to have full year profits for 2002 of $0.40 to $0.50 per share. In addition, the Company expects to generate over $100 million in free cash flow in 2002.
    A global power leader, Cummins Inc., is a corporation of complementary business units that design, manufacture, distribute and service electrical power generation systems, engines and related technologies, including fuel systems, controls, air handling, filtration and emission solutions. Headquartered in Columbus, Indiana, (USA) Cummins serves its customers through more than 500 company-owned and independent distributor locations in 131 countries and territories. With 24,900 employees worldwide, Cummins reported sales of $5.7 billion in 2001. Press releases by fax can be requested by calling News On Demand (toll free) at 888-329-2305. The Cummins home page can be found at www.cummins.com.

    Information provided and statements in this release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes beliefs and intentions on strategies regarding the future. It is important to note that the company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.