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					                                                                                                          Company Report
                                                                                         Global Industrial Infrastructure
 February 24, 2010 | 13 Pages



 CUMMINS, INC. (NYSE: CMI)                                                                                RATING: NEUTRAL
 A COUPLE OF EXTRA CYLINDERS, ANOTHER GEAR OR TWO,                                             Fiscal Year Ends Dec
 AND A WHOLE LOT OF HORSES TO POWER THIS ENGINE
 INTO THE NEXT CYCLE; MAINTAIN NEUTRAL ON VALUATION                          Rating:                                        Neutral
                                                                             Price: Close                                   $55.64
       Higher Profitability During the Trough, Significant Leverage          Price Target:                                     $60
       on Increasing Volumes - After introducing Cummins, Inc. CFO           52-wk Range:                             $18.34-$58.63
       Pat Ward to investors earlier this week in Dallas, Houston and        Market Capitalization (M):                    $11,200
       Kansas City, we believe the market opportunities are turning          Shares Outstanding (M):                        201.30
       increasingly favorable for Cummins. The company has proven            Avg. Daily Vol. (000):                          2,739
       the ability to flex manufacturing capacity up and down with real      Dividend:                                       $0.70
       demand, and has consistently generated positive cash flow during      Dividend Yield:                                 1.26%
       periods of weak demand. We maintain our Neutral rating but are        Consensus EPS Current Year:                     $2.39
       positively biased as we believe 1) higher trough profitability will   Consensus EPS Next Year:                        $3.76
       likely translate to higher mid and peak cycle earnings power, 2)      Est. 3-yr. EPS Growth:                       12 - 14%
       the strong balance sheet will allow for investment in critical
       growth initiatives as well as reward shareholders through a
                                                                             Ben Elias, CFA                   Nicholas P. Heymann
       possible dividend increase and an acceleration of the share           (212) 338-4706                         (212) 338-4703
       buyback, and 3) the company has not yet signed a contract with        belias@sterneagee.com          nheymann@sterneagee.com
       Chrysler for the 6.7L engine they supply, and are thus not
       precluded from discussing and/or entering into agreements with
       other OEMs.
       Updating FY2011 EPS, Catalyst will be March 16th Analyst Day
       – We have raised FY2011 EPS to $3.80 from $3.50 in the Engine
       segment to make allowance for the higher operating leverage after
       the restructuring and cost containment initiatives, and a lower
       share count from an estimated $150M share buyback. We expect
       Cummins to update their performance targets across the cycle
       (12% rev, 10% EBIT), and outline investment programs in Power
       Gen, and Off-Highway, as well as the earnings contribution from
       Distribution and Components (higher content).
       Maintain Neutral and Price Target of $60 – Our 6 -12 month
       price target of $60 is based on normalized EPS of $4.00 and
       assumes the stock trades at a 15x forward P/E multiple. Over the
       last 5 years, Cummins has traded between 10x and 15x forward
       earnings, excluding outlier events.


                                                    Earnings Summary
FYE Dec                            2009E                        2010E                                     2011E
                                                   EPS & P/E Summary
                                   2009E    2009 Previous       2010E 2010 Previous                       2011E    2011 Previous
EPS:         Q1                     $0.26                -       $0.20            --                           -               --
             Q2                     $0.30                -       $0.25            --                           -               --
             Q3                     $0.56                -       $0.70            --                           -               --
             Q4                     $1.36                -       $1.10            --                           -               --
             Full Year              $2.48                -       $2.25            --                       $3.80           $3.50
P/E Ratio:                           22.4               --        24.8            --                        14.6               --
   Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification,
Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section.
             800 Shades Creek Parkway           Suite 700          Birmingham, AL 35209                   205-949-3500
                                   Sterne, Agee & Leach Inc. is Member NYSE, FINRA, SIPC
CUMMINS, INC. (NYSE: CMI)                                                                   February 24, 2010

Reassessing the Growth Opportunities - We Believe Cummins is Attractively
Repositioned for Higher Profitability and Recognize the Potential for Higher Growth
Investments

Over the last 12 months, we have observed Cummins react swiftly to the weaker global
demand across its early/mid and late cycle businesses. Decisions to cut capacity, both
fixed and human, were both quick and deep. Having experienced 5 prior recessions,
Chairman Tim Solso recommended immediate and deep, rather than incremental and
reactionary adjustments. With the company now in a position to flex-up and flex-down
manufacturing to fluctuating demand levels, we are no longer as concerned about the
potential for under-absorption as we are about under-appreciating the opportunity for
operating leverage on improving Class 8 volumes, the company’s unique Power
Generation solutions as continuing under-investment leads to demand for power
exceeding supply, and the undervalued potential of the Distribution and Component
segments. Announcements regarding planned investment in new product lines with an
emphasis in off-highway and power gen, and initiatives to further improve the
competitive advantage of the total solutions package in Components could prove to be
near-term catalysts.

Cycling Into a Higher Gear

Cummins’s expiring Five year Performance Targets across the cycle for 2006 – 2011
aimed for 12% sales growth and 10% EBIT as a percentage of sales. Based on
significantly higher vehicle volumes, the company was on target through 2008. The
confluence of negative factors including the unavailability of credit, the fourth
consecutive year of below replacement Class 8 demand, and delays in power gen
installation led to 2009 performance falling below trend. The subsequent restructuring
including a 15% (8,000 employees) reduction in the workforce, and the closing of
marginally productive plants has enabled the company to significantly lower break-even
points. Despite 1H10 Class 8, Bus, and Medium Duty volumes declining close to 80%,
the decline in revenue will be nearer to the 50% level due to a higher mix of components
revenue and aftermarket spare parts and services.

If 4Q09, where the pre-buy resulted in production of approximately 28,000 engines and
operating margins of 9.7% in the Engine segment is any indicator, we can appreciate that
industry demand approaching traditional replacement levels of 220,000 vehicles will
result in higher profitability, even as capacity is slowly flexed up with demand. With
current capacity utilization near 20% for Class 8 engines in 1Q10, the company still
expects to break even and maintain profitability in the quarter, with revenues and income
increasing sequentially each quarter after the first. Annual industry replacement demand
of 220,000 engines, a run-rate likely to be attained in 1H11, is expected to lead to near
100% utilization rates at Cummins, even if market-share at the company were to fall to
the low 35 – 40% range from 50% currently. North American industry production for
Class 8 vehicles in 2010 is currently expected to be 120,000 – 130,000 units (up 30%
from 2009), and thus the trend towards the replacement rate involves a near 100%
increase in production between 2010 and 2011.

In Power Gen, the gap between demand and supply has remained constant through the
recession. Markets outside North America and Europe account for 50% of revenues and
have shown evidence of growth after 2Q09. The company believes the worst is certainly
over in North America and Europe, where demand for Power Gen equipment bears a

                                                                                                     Page 2
CUMMINS, INC. (NYSE: CMI)                                                                    February 24, 2010

closer correlation to GDP than to commercial construction. Global demand for electricity
has been increasing at a rate of 4.0 – 4.5%, chased by supply at approximately 3%. We
believe the shortfalls in electricity delivery benefit companies like Cummins and
Caterpillar (CAT – $56.44 – NTRL) who are able to supply Distributive Generation as
well as Standby Power.

Demand for Distributive Generation is one of the primary drivers of sales in the
Emerging Markets, where the investment in new electrical grids have not yet been
realized. Rural communities, mining sites, and smaller towns and villages continue to
rely on unique solutions not dependent on an unreliable grid. For example, Standby
Power serves the larger industrial areas in India and China where rolling brown-outs are
still a daily occurrence, especially in tech centers such as Bombay, Bangalore, and
Hyderabad in India, where several Silicon Valley firms have large corporate campuses
and call centers. Companies such as Emerson (EMR – $48.21 – Buy) are reporting
growing Gross Fixed Investment in the Network Power businesses in the Emerging
Markets and are matching the growth by repositioning their exposure through
acquisitions (Emerson acquired Avocent). Schneider Electric (SU FP – €78.91 – NR),
not wanting to lose market share to Emerson, is also looking to extend its reach to the
growing demand for Network Power in Asia through its APC division.

In the developing markets demand for Cummins’ Power Gen solutions appears to have
stabilized. We would correct the misperception that demand has waned due to two
consecutive years of declining electricity consumption in the US. Demand has remained
constant while investment spending by utilities on maintenance and on improving reserve
margins has been disappointing.

Distribution, Cummins’ retail arm for engines and power gen equipment is vastly better
positioned than it was during the last cycle. The company has consolidated its joint
venture partnerships in North America to 16 partnerships, down from 33 during the last
cycle. The better balance between the on-highway and off-highway businesses, as well
as sell-through to smaller OEMs, has allowed for a better supply chain. The higher
volume of Cummins engines sold this last decade is also resulting in a steady
aftermarkets business, which today stands and approximately 50% of the $5B in total
revenue (consolidated + joint venture + independent).

The new EPA 2010 engines at Cummins will effectively double the dollar content per
engine for the Components segment, which we believe will provide the largest
contribution to revenue and EBIT growth over the next 15 months. This segment is also
where Cummins has made the biggest strides in addressing the cost structure and has
realigned capacity to meet real demand by closing under-utilized manufacturing facilities
(2 plants in Charleston, SC consolidated into 1). We believe Components will
demonstrate high growth and leverage starting 4Q10 after the company fully transitions
to manufacturing 2010 engines for 2010 trucks.

New Cycle, Cummins Has Bigger Gears

With demand stabilizing, cost containment strategies proving effective, and a bullet proof
balance sheet, we believe Cummins will likely revise revenue growth and EBIT targets
for the 2010 – 2015 period. During the last trough, the company lost money, while
margins peaked at a little above 10%. In the present economic (recession) cycle thus far,
EBIT margins troughed at 2.8% in 4Q08, with the benefits from restructuring actions
                                                                                                      Page 3
CUMMINS, INC. (NYSE: CMI)                                                                     February 24, 2010

accruing in future quarters. Cummins is not simply a suitably well run industrial
company that has managed to sustain profitability, reduce net debt to capital (from 64%
to 15%) and generate record cash flow at the bottom of the cycle. For example, in the
High-Horse Power segment at Daventry, Cummins was making between 10 – 12 engines
a day between 2003 and 2008. Industry demand led to production levels of 50 engines a
day over 3 shifts in 2008. Capacity was added on simply to meet demand with little
thought of incremental cost, profit, or margin. Demand soon fell to 25 engines a day, still
being manufactured over 3 shifts. Cummins has now effected permanent structural
adjustments to go to 1 shift with an output of 16 units a day. We believe similar
structural cost take-outs across other segments has already allowed for higher troughs,
and will allow for peak to peak growth with concomitant increases in profitability.

Even if at a minimum, the company left unchanged the target for 12% sales growth
(could it be possible when Class 8 production will effectively double between 2010 and
2012?), we anticipate higher profitability from just the increasing proportion of Emerging
Markets revenues (lower costs) and the higher content of sales in Components as well as
aftermarket revenues.

Return on Investment in Products and Technology Likely to Exceed Returns from
Dividend Increase and/or Accelerated Share Buyback

Cummins is investing $400M in CapEx in 2010, one-third of which will be for capacity
additions, one-third for maintenance, and one-third for new products. The latter will most
likely be invested in the growing off-highway segment where we foresee long-term
growth in the mining and oil & gas industries. The Tier IV standards present an
opportunity for the company to introduce and improve upon existing products. At
present, Caterpillar and Cummins are the dominant suppliers of off-highway engines with
roughly equal share in mining and marine (40% each), and Caterpillar dominating oil &
gas.

Concurrently, the opportunity in Power Gen is as interesting and also dominated by
Caterpillar (40% share) and Cummins (24% share). Cummins is preparing to move up
the value chain from selling engines, and alternators (Engine + Alternator = Genset) to
providing total solutions in the form of System Design, Switchgears, Transfer Switches
and controls. This simply moves the company from equipment supplier to MRO
services. The evolution from engine and alternator supplier to total solutions and
maintenance provider has been in process over the last few years, and we envision the
strategy resembling Otis making a concerted effort to sell maintenance contracts and not
just elevators.

One niche we believe has not garnered enough attention and is currently under-
appreciated is the Light-Duty Diesel engine. The pre-bankruptcy contract with Chrysler
had a sliding scale between volume and price. As volumes fell, price went up. The
contract prevented Cummins from selling the 6.7L engine to other OEMs. Post
bankruptcy Chrysler has not signed a similar contract, and Cummins continues to sell
them 6.7L engines. The absence of a contract, in our estimation, leaves the door open for
Cummins to enter into discussions to supply other OEMs with Light-Duty Diesel
engines. At present, deliveries to Chrysler could result in approximately 60,000 engines
in 2010. A similar volume of delivery to one, if not two OEMs, could be significantly
accretive to Cummins’ outlook.


                                                                                                       Page 4
CUMMINS, INC. (NYSE: CMI)                                                                      February 24, 2010

Growth Story Beyond North American Trucks

Cummins derived approximately $1.7B in sales from China, $1.3B from India, and over
$500M in sales from Brazil. These emerging economies are expected to consistently
grow at a faster pace than the developed markets. Engine manufacturing in India is
insufficient to meet demand in excess of what is ordered by Tata Motors. New emissions
as well as safety standards will lead to higher sales of trucks in the emerging markets, as
well as allow Cummins a low cost manufacturing base to supply other growing markets.
China and India are currently 2 emissions cycles behind North America and higher
content per engine will continue to drive revenue and EBIT growth in the Components
segment as well as across the firm. The emerging markets will offset the tepid recovery
in the Power Gen segment, while the growth in truck demand will augment the cyclical
recovery in North America.

Valuation

Our current 6 -12 month price target of $60 is based on normalized EPS of $4.00 and
assumes the stock trades at a 15x forward P/E multiple. We believe Cummins can
continue to effect successful cash generation from operations as well as optimize the use
of working capital and can continue to grow Free Cash Flow. The company currently has
$930M in cash, and is estimating FY2010 cap-ex of $400M. The company has
approximately $600M in debt, which is not due until 2027, and a net debt to capital ratio
of approximately 15%.

We believe it is highly likely that the company will increase the dividend, after raising it
in 3 of the last 4 years. Cummins believes in maintaining a schedule of higher
sustainable dividend payments. The company is also revisiting its stock buyback plan,
and will likely repurchase the remaining $350M worth of equity in the original $500M
program initiated in 2008. Cummins bought back $500M between 2005 and 2007, and
then $128M of the new $500M program in 2008 before the nature of the global meltdown
became evident. In 4Q09, approximately $20M of stock was repurchased.




                                                                                                        Page 5
CUMMINS, INC. (NYSE: CMI)                                                                                                                                                                                 February 24, 2010

Cummins, Inc. Statement of Cash Flows
  Cummins Inc. - Summary Financial Statements 2005—2010E
  (Dollars and shares in millions, except per-share data)




  INCOME STATEMENT                                              2005                          2006                          2007                          2008                          2009                          2010E
                                                                        Oper.                         Oper.                         Oper.                         Oper.                         Oper.                          Oper.
  Segment Breakdown:                                 Sales              Profits    Sales              Profits    Sales              Profits    Sales              Profits    Sales              Profits     Sales              Profits
     Engine                                         $6,657              $582      $7,511               $733     $8,182               $589     $8,810               $535     $6,405              $252       $6,266               $646
     Power Generation                               $1,999              $145      $2,416               $220     $3,060               $334     $3,500               $376     $2,417              $167       $2,378               $249
     Distribution                                   $1,191              $107      $1,385               $144     $1,540               $187     $2,164               $242     $1,784              $235       $2,042               $246
     Component                                      $2,000               $89      $2,281               $107     $2,932               $153     $3,152               $169     $2,355               $95       $2,596               $173
     Eliminations                                   ($1,929)            ($16)     ($2,231)             ($25)    ($2,666)             ($36)    ($3,284)            ($102)    ($2,161)             $21       ($2,150)             ($75)
  Total                                             $9,918              $894      $11,362             $1,131    $13,048             $1,155    $14,342             $1,315    $10,800             $666       $11,132             $1,238


  Pretax Income                                      $798                         $1,083                        $1,169                        $1,178                         $735                           $749
  Less Taxes                                         $216                          $324                          $381                          $360                          $188                           $240
  M inority int. in earnings of subs                 $32                           $44.0                          $49                           $63                           $56                            $64
  Net Income Cont. Ops                              $550                           $715                          $739                          $755                          $491                           $445
  Int on jr convert sub debs, net of tax            $12.8                          $7.3                          $0.0                          $0.0                          $0.0                           $0.0
  Discontinued, Unusuals                            ($13.5)                        ($26.0)                       $0.0                          $25.0                         $63.0                          $0.0
  Net Income Including Unusuals                     $550.7                        $733.7                        $739.0                        $730.0                        $428.0                         $445.0


  Reported EPS                                      $2.75                          $3.56                         $3.70                         $3.84                         $2.48                          $2.25
  EPS Including Unusuals (GAAP)                     $2.70                          $3.61                         $3.70                         $3.71                         $2.16                          $2.25


  EBITDA                                            $1,058                        $1,287                        $1,240                        $1,346                        $1,063                         $1,035
  EBITDA per share                                  $5.18                          $6.34                         $6.20                         $6.85                         $5.38                          $5.22


  Shares Outstanding (M )                            204.3                         203.0                         199.9                         196.5                         197.7                          198.0


  Quarterly EPS
                         Q1                         $0.48                          $0.66                         $0.71                         $0.97                         $0.26                          $0.20        E
                         Q2                         $0.69                          $1.08                         $1.06                         $1.49                         $0.30                          $0.25        E
                         Q3                         $0.71                          $0.84                         $0.92                         $1.17                         $0.56                          $0.70        E
                         Q4                         $0.81                          $0.94                         $1.00                         $0.22                         $1.36                          $1.10        E




  CASH FLOW                                                     2005                          2006                          2007                          2008                          2009                          2010E


  Sources
     Net Income                                                 $551                          $715                          $739                          $755                          $428                           $445
     Depr. & Amort.                                             $295                          $296                          $290                          $314                          $326                           $350
     Gain on sale of property, plant and equip                   $4                            $5                           ($12)                         $45                           $50                            $55
     Deferred Taxes                                             $124                          $139                          $60                           $60                           $45                            $50
     Equity in earnings of investee, net of divs                 $7                           ($38)                         ($75)                         ($45)                         ($67)                          ($75)
     M inority interests in erngs of consol subs                $32                           $44                           $49                           $63                           $56                            $64
     Pension exp, contribution, post ret ben                    ($69)                        ($181)                        ($180)                        ($120)                        ($170)                         ($170)
     Stoc k Based Comp                                          $16                           $18                           $28                           $25                            $0                             $0
     Translation and hedging                                    $11                           ($26)                         ($24)                         ($20)                         ($53)                           $5
     Other (net)                                                ($11)                         $36                           ($10)                         ($5)                          ($10)                          ($10)
     Change in Working Capital                                 ($287)                        ($191)                        ($150)                        ($150)                         $506                           $150
     Changes in long-term liabilities                           $88                           $23                           $95                           $20                           $30                             $0
  From Operations                                              $761                          $840                          $810                          $942                          $1,141                         $864


     Dispositions                                               $21                           $73                           $79                           $64                            $0                            $100
     Net Debt                                                  ($292)                        ($309)                        ($129)                         ($43)                         ($23)                          ($25)
     Effect of Exchange rate changes on cash                    ($8)                           $6                           $18                           ($53)                         $17                            $10
  Total Sources                                                $482                          $610                          $778                          $910                          $1,118                         $939


  Uses:


     Net Capital Spending                                       $225                          $301                          $420                          $543                          $310                           $400
     Dividends                                                  $56                           $66                           $89                           $122                          $141                           $145
     Distributions to non-controlling interests                                                                                                           $24                           $34                            $35
     Acquisitions Net                                           ($1)                          $32                           $30                           $185                          $160                           $100
     Net Equity                                                 $39                           $150                          $387                          $154                          ($50)                           $0
     Other (net)                                                ($6)                           $0                           $114                          $25                           $13                            $25
  Total Uses                                                   $313                          $549                          $1,040                        $1,053                        $608                           $705


  Change in Cash                                               $169                           $61                          ($262)                        ($143)                        $510                           $234




  CAPITALIZATION                                                2005                          2006                          2007                          2008                          2009                          2010E


  Short-Term Debt                                               $154                          $164                          $119                          $39                           $37                            $40
  Long-Term Debt                                               $1,213                         $647                          $555                          $629                          $637                           $605
  Shareholders' Equity                                         $1,864                        $2,802                        $3,409                        $3,234                        $3,773                         $3,850
  Total Capitalization                                         $3,231                        $3,613                        $4,083                        $3,902                        $4,447                         $4,495


  Cash & Equivalents                                           $779                          $840                          $578                          $435                          $945                           $1,179
  1 Yr Cash Return to Shareholders                             17.3%                         29.4%                         64.4%                         20.1%                         36.0%                          38.2%
  3 Yr Avg. Cash Return to Shareholders                          NA                            NA                          37.0%                         38.0%                         40.2%                          31.4%


  Debt/Total Capital                                            42%                           22%                           17%                           17%                           15%                            14%
  Net Total Capital                                            $2,452                        $2,773                        $3,505                        $3,467                        $3,502                         $3,316
  Net Debt/Total Cap.                                           24.0%                         -0.8%                         2.4%                          6.0%                          -6.1%                         -11.9%


  Average ROE                                                     -                           31%                           24%                           23%                           12%                            12%
  Average ROTC                                                    -                           21%                           19%                           19%                           10%                            10%
  Average Total Capital                                           -                          $2,613                        $3,139                        $3,486                        $3,485                         $3,409
  Average Net ROTC                                                -                          27.4%                         23.5%                         21.7%                         12.3%                          13.1%



  Source: Company reports and Sterne Agee estimates



                                                                                                                                                                                                                                Page 6
CUMMINS, INC. (NYSE: CMI)

Cummins, Inc. Annual Income Statement
         Cummins Inc. — Sales And Earnings Model 2005-2011E
         (Dollars and shares in millions, except per-share data)



         Revenue By Segment                                        2005       2006     % Chge    2007      % Chge   2008      % Chge    2009     % Chge    2010E      % Chge    2011E     % Chge
            Engine                                                  6657      7,511    12.8%     8,182      8.9%     8,810     7.7%     6,405    -27.3%     6,266     -2.2%      7,687    22.7%
            Power Generation                                        1999      2,416    20.9%     3,060     26.7%     3,500    14.4%     2,417    -30.9%     2,378     -1.6%      2,490     3.0%
            Distribution                                            1191      1,385    16.3%     1,540     11.2%     2,164    40.5%     1,784    -17.6%     2,042     14.4%      2,052    15.0%
            Component                                               2000      2,281    14.1%     2,932     28.5%     3,152     7.5%     2,355    -25.3%     2,596     10.2%      2,661    13.0%
            Eliminations                                           (1929)    (2,231)   15.7%     (2,666)   19.5%    (3,284)   23.2%    (2,161)   -34.2%     (2,150)   -0.5%     (2,550)   18.0%
         Total Revenue                                             $9,918    $11,362   14.6%    $13,048    14.8%    $14,342    9.9%    $10,800   -24.7%    $11,132     3.1%     $12,340   14.3%


         Cost of sales                                             7,732      7,732     0.0%    10,492     35.7%    11,402     8.7%     8,631    -24.3%     8,965      3.9%      9,727     8.5%
         Gross Margin                                              2,186      2,186     0.0%     2,556     16.9%     2,940    15.0%     2,169    -26.2%     2,167     -0.1%      2,613    20.5%
         Gross Margin %                                             22.0%     19.2%              19.6%               20.5%              20.1%               19.5%                21.2%


         Selling and administrative expenses                       1,145      1,153     0.7%     1,296     12.4%     1,450    11.9%     1,239    -14.6%     1,305      5.3%      1,275     0.3%
         Research and engineering expenses                          278        321     15.5%      329       2.5%      422     28.3%     362      -14.2%      350      -3.3%       370     -3.0%
         Investee equity, royalty and other income                  (131)     (140)     6.9%     (205)     46.4%     (253)    23.4%     (214)    -15.4%     (248)     15.9%      (280)    30.8%
         Restructuring                                               0          0                  0                   0                 99                   4                    0
         Other operating income, net                                 0          0                 (19)                 6                 17                  11                   10


         Operating Earnings                                         894      1,131     26.5%     1,155      2.1%    1,315     13.9%     666      -49.4%     745       11.8%     1,238     85.8%


         Cost of sales as % of Revs                                 78.0%     78.3%              80.4%               79.5%              79.9%               80.5%                78.8%
         SA as % of Revs                                            11.5%     10.1%               9.9%               10.1%              11.5%               11.7%                10.3%


         Operating Margin
            Engine                                                  8.7%      9.8%                7.2%               6.1%               3.9%                 4.1%                8.4%
            Power Generation                                        7.3%      9.1%               10.9%               10.7%              6.9%                 7.4%                10.0%
            Distribution                                            9.0%      10.4%              12.1%               11.2%              13.2%               11.8%                12.0%
            Component                                               4.5%      4.7%                5.2%               5.4%               4.0%                 6.8%                6.5%
         Total Operating Margin                                     9.1%      10.4%              9.4%                8.5%               7.1%                7.0%                 10.0%


         Operating Income By Segment
            Engine                                                  582        733     25.9%      589      -19.6%     535     -9.2%     252      -52.9%      258       2.3%       646     156.2%
            Power Generation                                        145        220     51.7%      334      51.8%      376     12.6%     167      -55.6%      175       4.9%       249     49.1%
            Distribution                                            107        144      NA        187      29.9%      242     29.4%     235      -2.9%       240       2.1%       246      4.8%
            Component                                                89        107     20.2%      153      43.0%      169     10.5%      95      -43.8%      176      84.8%       173     82.1%
            Eliminations                                            (16)       (25)     NA        (36)     44.0%     (102)    183.3%     21      -120.6%     (74)     -452.4%     (75)    -457.1%
         Total Operating Income                                    $907      $1,179    30.0%    $1,227      4.1%    $1,220    -0.6%     $770     -36.9%     $775       0.6%     $1,239    60.9%


         EBITDA                                                    $1,058    $1,287    21.6%    $1,240     -3.7%    $1,346     8.5%    $1,063    -21.0%    $1,035               $1,614
         EBITDA as a % of sales                                    10.7%      11.3%              9.5%                9.4%               9.8%                9.3%                 13.1%


           Interest Expense                                         (109)      (96)               (58)                (42)              (35)                 (26)                 (24)
            Interest Income                                          24        47                 36                  18                 8                    8                   15
            Other income (expense) net                              (11)        1                 36                  (70)               (15)                (16)                 (30)


         Pre-Tax Income                                            $798      $1,083    35.7%    $1,169      7.9%    $1,178     0.8%     $735     -37.6%     $749                $1,215    65.3%
            Income Tax Provision (Benefit)                          216        324                381                 360               188                  240                  389
            Tax Rate (%)                                            27.1%     29.9%              32.6%               30.6%              25.6%               32.0%                32.0%


         Net Income                                                $582.0    $759.0    30.4%    $788.0      3.8%    $818.0     3.8%    $547.0    -33.1%    $509.0     -6.9%     $826.1    51.0%


            Minority interests in earnings of consl subs            32.0       44.0               49.0                63.0              56.0                 64.0                 82.0


         Net Income Excluding Minority interest                    $550.0    $715.0    30.0%    $739.0      3.4%    $755.0     2.2%    $491.0    -35.0%    $445.0     -9.4%     $744.1    51.5%


            Int on junior convertible sub debentures, net of tax    12.8       7.3                0.0                 0.0                0.0                 0.0                  0.0
            Unusual & Discontinued ops                              (13.5)    (26.0)              0.0                25.0               63.0                 0.0                  0.0


         Net Income Including Unusuals                             $550.7    $733.7    33.2%    $739.0      0.7%    $730.0    -1.2%    $428.0    -41.4%    $445.0      4.0%     $744.1    73.9%



         Reported EPS                                              $2.69     $3.52     30.8%     $3.70      5.0%    $3.84      3.9%    $2.48     -35.4%     $2.25     -9.5%     $3.80     53.2%
         EPS Including Unusuals (GAAP)                             $2.70     $3.61     34.1%     $3.70      2.3%    $3.71      0.5%    $2.16     -41.7%     $2.25      3.8%     $3.80     75.8%


         Diluted Shares Out (Mil)                                   204.3     203.0              199.9               196.5              197.7               198.0                195.6




        Source: Company reports and Sterne Agee estimates




                                                                                                                                                                                                    Page 7
CUMMINS, INC. (NYSE: CMI)                                                                                                                                                    February 24, 2010

Cummins, Inc. Quarterly Income Statement
  Cummins Inc. — 2010E Quarterly Sales And Earnings Model
  (Dollars and shares in millions, except per-share data)


  Revenue By Segment                                1Q10E      1Q09     % Chge    2Q10E      2Q09     % Chge    3Q10E      3Q09     % Chge   4Q10E      4Q09     % Chge    2010E      2009      % Chge
    Engine                                           1229      1492     -17.6%     1345      1306      3.0%      1602      1439     11.4%     2090      2168     -3.6%      6266       6405     -2.2%
    Power Generation                                  552       657     -16.0%      573       610      -6.0%      604       549     10.0%      649       601      8.0%      2378       2417     -1.6%
    Distribution                                      463       413      12.0%      491       463      6.0%       515       422     22.0%      573       486     18.0%      2042       1784     14.4%
    Component                                         604       530      14.0%      612       502     22.0%       662       591     12.0%      717       732     -2.0%      2596       2355     10.2%
    Eliminations                                    (475.0)   (653.0)    2.0%     (500.0)   (450.0)    2.0%     (575.0)   (471.0)    2.0%    (600.0)   (587.0)    2.0%    (2150.0)   (2161.0)   -0.5%
  Total Revenue                                     $2,373    $2,439     -2.7%    $2,521    $2,431     3.7%     $2,808    $2,530    11.0%    $3,430    $3,400     0.9%    $11,132    $10,800     3.1%


  Cost of sales                                     1935.0    1994.0     -3.0%    2065.0    1983.0    -33.5%    2240.0    2027.0    -33.0%   2725.0    2627.0    -26.6%    8,965     8631.0      3.9%
  Gross M argin                                      437.6     445.0     -1.7%     456.2     448.0     1.8%      568.0     503.0    12.9%     704.8     773.0    -8.8%    2,166.5    2169.0     -0.1%
  Gross M argin %                                    18.4%     18.2%               18.1%     18.4%               20.2%     19.9%              20.5%     22.7%              19.5%      20.1%


  Selling and administrative expenses               305.0     300.0     -14.0%    320.0     287.0     -19.0%    320.0     304.0     -25.0%   360.0     348.0     -12.6%    1,305     1239.0      5.3%
  Research and engineering expenses                 100.0      85.0      17.6%     90.0      79.0     -26.0%     80.0      90.0     -30.0%    80.0     108.0     -30.0%     350       362.0     -3.3%
  Investee equity, royalty and other (income)        (62.0)    (33.0)    87.9%     (62.0)    (57.0)    8.8%      (62.0)    (57.0)    8.8%     (62.0)    (67.0)   -7.5%     (248)      (214.0)   15.9%
  Restructuring                                       2.0       0.0                 2.0      0.0                  0.0      0.0                 0.0      4.0                  4        99.0
  Other operating (income), net                       2.0      (2.0)               2.0       11.0                 2.0      3.0                5.0       5.0                 11        17.0


  Operating Earnings                                  91        95                 104       121                 228       141                322       375                745        666       11.8%


  Cost of sales as % of Revs                         81.6%     81.8%               81.9%     81.6%               79.8%     80.1%              79.5%     77.3%              80.5%      79.9%
  SA as % of Revs                                    12.9%     12.3%               12.7%     11.8%               11.4%     12.0%              10.5%     10.2%              11.7%      11.5%


  Operating M argin
    Engine                                           0.5%      -1.1%               0.5%      -0.3%               5.5%      4.2%               7.5%      9.7%               4.1%        3.9%
    Power Generation                                 5.0%      10.5%               6.0%      6.7%                8.0%      4.2%               10.0%     5.7%                7.4%       6.9%
    Distribution                                     10.0%     14.0%               10.0%     11.9%               12.5%     13.0%              14.0%     13.8%              11.8%      13.2%
    Component                                        4.5%      0.2%                5.0%      -2.0%               7.5%      5.2%               9.5%      10.0%              6.8%        4.0%
  Total Operating M argin                            3.8%      3.9%                4.1%      4.8%                8.3%      7.0%              10.2%     11.3%               7.0%       7.1%


  Operating Income By Segment
    Engine                                            6.1      -16.0    -138.4%     6.7      -4.0     -268.1%    88.1      61.0     44.5%    156.7      211.0    -25.7%    257.7      252.0      2.3%
    Power Generation                                 27.6      69.0     -60.0%     34.4      41.0     -16.1%     48.3      23.0     110.1%    64.9      34.0     90.9%     175.2      167.0      4.9%
    Distribution                                     46.3      58.0     -20.2%     49.1      55.0     -10.8%     64.4      55.0     17.0%     80.3      67.0     19.8%     240.0      235.0      2.1%
    Component                                        27.2       1.0     2618.9%    30.6      -10.0    -406.2%    49.6      31.0     60.1%     68.1      73.0     -6.6%     175.6       95.0     84.8%
    Eliminations                                     (18.0)    (18.0)              (18.0)    34.0                (18.0)    7.0                (20.0)    (2.0)              (74.0)     21.0
  Total Operating Income                             $89       $94       -5.1%    $103      $116      -11.4%    $232      $177      31.3%    $350      $383      -8.6%     $775       $770       0.6%


  EBITDA                                            $154      $138       11.7%    $168      $193      -13.0%    $297      $262      13.5%    $415      $170      144.2%   $1,035      $763      35.6%
  EBITDA as % of Sales                               6.5%      5.7%                6.7%      7.9%               10.6%     10.4%              12.1%      5.0%               9.3%       7.1%


  Interest expense                                   (8.0)     (7.0)               (6.0)    (10.0)               (6.0)     (9.0)              (6.0)     (9.0)              (26.0)     (35.0)
    Interest Income                                   2.0       2.0                2.0       1.0                  2.0      2.0                2.0       3.0                 8.0        8.0
    Other income (expense) net                       (4.0)     (3.0)               (4.0)     (13.0)              (4.0)      6.0               (4.0)     (5.0)              (16.0)     (15.0)


  Pre-Tax Income                                     $81       $87       -6.7%     $97      $106       -8.7%    $226      $168      34.8%    $344      $374      -8.0%     $749       $735       1.8%
    Income Tax Provision (Benefit)                  $26.0     $29.0               $31.0     $32.0               $72.5     $43.0              $110.1    $84.0              $239.5     $188.0
    Tax Rate (%)                                     32.0%     33.3%               32.0%     30.2%               32.0%     25.6%              32.0%     22.5%              32.0%      25.6%


  Net Income                                         $55       $58       -4.8%     $66       $74      -11.0%    $154      $125      23.2%    $234      $290      -19.3%    $509       $547      -6.9%


    M inority interests in earnings of consl subs     16         7                  16        14                  16        15                 16        20                 64         56


  Net Income Excluding M inority interest            $39       $51      -23.1%     $50       $60      -16.9%    $138      $110      25.4%    $218      $270      -19.3%    $445       $491      -9.4%


                                                  of
    Int on junior convertible sub debentures, net 0.0 tax       0.0                 0.0      0.0                  0.0      0.0                 0.0      0.0                 0.0        0.0
    Unusual & Discontinued ops                        0.0      44.0                0.0       4.0                  0.0      15.0               0.0       0.0                 0.0       63.0


  Net Income Including Unusuals                      $39        $7      461.7%     $50       $56      -11.0%    $138       $95      45.2%    $218      $270      -19.3%    $445       $428       4.0%


  Reported EPS                                      $0.20     $0.26     -23.5%    $0.25     $0.30     -17.2%    $0.70     $0.56     25.3%    $1.10     $1.36     -19.0%    $2.25      $2.48     -9.5%
  EPS Including Unusuals (GAAP)                     $0.20     $0.04     458.8%    $0.25     $0.28     -11.3%    $0.70     $0.48     45.1%    $1.10     $1.36     -19.0%    $2.25      $2.16      3.8%


  Diluted Shares Out (M il)                          198.0     197.0               198.0     197.4               198.0     197.8              198.0     198.7              198.0      197.7




  Source: Company reports and Sterne Agee estimates

                                                                                                                                                                                                Page 8
CUMMINS, INC. (NYSE: CMI)                                                                                           February 24, 2010

                                                     APPENDIX SECTION

Company Description: Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines, electric
power generation systems and engine-related component products, including filtration and exhaust after-treatment, fuel systems,
controls and air handling systems. The Company sells its products to original equipment manufacturers (OEMs), distributors and
other customers worldwide. Cummins operates four operating segments: Engine, Power Generation, Components and Distribution.

IMPORTANT DISCLOSURES:

Price Target Risks & Related Risk Factors:
Risks to our investment thesis for Cummins include: 1) weaker than expected orders for Class 8 Trucks in anticipation of the 2010
EPA standards; 2) weaker than expected demand for light and medium trucks from the emerging markets; 3) vertical integration in the
truck engine market which will capture market share from Cummins; 4) declines in non-residential construction which accounts for
33% of revenues, and 5) competition for Power Generation equipment from low-cost manufacturers in the region.

Valuation Methodology:
Cummins Corp. is rated Neutral and has a 6 -12 month price target of $60, which is based on normalized EPS of $4.00 and assumes
the stock trades at a 15x forward PE multiple. Over the last 5 years, Cummins has traded between 10x and 15x forward earnings,
excluding outlier events.

Regulation Analyst Certification:
I, Ben Elias, CFA, hereby certify the views expressed in this research report accurately reflect my personal views about the subject
security(ies) or issuer(s). I further certify that no part of my compensation was, is, or will be, directly or indirectly, related to the
specific recommendations or views expressed by me in this report.

Sterne, Agee & Leach, Inc. Disclosure Legend as of February 24, 2010:

            Company                                                                        Disclosure(s) – See Below
            Caterpillar, Inc. (CAT - NYSE):                                                None
            Cummins, Inc. (CMI - NYSE):                                                    None
            Emerson Electric Co. (EMR - NYSE):                                             None

    1.    Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company.
    2.    Sterne, Agee & Leach, Inc. has, over the past 12 months, managed or co-managed a public securities offering or
          provided other investment banking services for the subject company.
    3.    Sterne, Agee & Leach, Inc. has various security accounts open for the subject company.
    4.    Sterne, Agee & Leach, Inc. provides administration for 401(k) plans for the subject company.
    5.    Sterne Agee Financial Services, Inc. has clearing agreements with the subject company.
    6.    The Sterne Agee analyst who has active coverage on this company owns a position in the subject company.

Sterne, Agee & Leach, Inc.’s research analysts receive compensation that is based upon various factors, including Sterne, Agee &
Leach, Inc.’s total revenues, a portion of which is generated by investment banking activities.

Definition of Investment Ratings:

BUY:                       We expect this stock to outperform the industry over the next 12 months.
NEUTRAL:                   We expect this stock to perform in line with the industry over the next 12 months.
SELL:                      We expect this stock to underperform the industry over the next 12 months.
RESTRICTED:                Restricted list requirements preclude comment.

Ratings Distribution:
Of the securities rated by Sterne, Agee & Leach, Inc., as of December 31, 2009, 41.3% had a BUY rating, 54.4% had a NEUTRAL
rating, 4.3% had a SELL rating, and 0% was RESTRICTED. Within those ratings categories, 2.04% of the securities rated BUY,
1.94% rated NEUTRAL, 0% rated SELL, and 0% rated RESTRICTED received investment banking services from Sterne, Agee &
Leach, Inc., within the 12 months preceding December 31, 2009.


                                                                                                         Appendix Section, Page I
CUMMINS, INC. (NYSE: CMI)                                                                                            February 24, 2010

ADDITIONAL INFORMATION AVAILABLE UPON REQUEST: Contact Robert Hoehn at 1-212-338-4731.

Other Disclosures:
Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not
represent that it is accurate or complete, and it should not be relied upon as such. Sterne, Agee & Leach, Inc., its affiliates, or one or
more of its officers, employees, or consultants may, at times, have long or short or options positions in the securities mentioned herein
and may act as principal or agent to buy or sell such securities.

Copyright © 2010 Sterne, Agee & Leach, Inc. All Rights Reserved.

Sterne, Agee & Leach, Inc. disclosure price charts are updated within the first fifteen days of each new calendar quarter per FINRA
regulations. Price charts for companies initiated upon in the current quarter, and rating and target price changes occurring in the
current quarter, will not be displayed until the following quarter.

Price Chart(s):




To receive price charts or other disclosures on the companies mentioned in this report, please contact Sterne, Agee & Leach, Inc. toll-
free at (800) 966-0814 or (205) 949-3689.




                                                                                                         Appendix Section, Page II
                                                     STERNE, AGEE & LEACH, INC.
                  Founded in 1901, Sterne Agee has been providing investors like you with high-quality investment opportunities for
                  over a century. During the early years, our founders prominently established themselves in the financial securities
                  industry in the southeastern United States. Today, we have expanded to serve all regions of the country. Sterne,
                  Agee is headquartered in Birmingham, Alabama with offices in 22 states including Alabama, Arkansas, California,
Florida, Georgia, Illinois, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, New Jersey, New York,
North Carolina, Pennsylvania South Carolina, Tennessee, Texas, Virginia, and Wisconsin. Sterne Agee is one of the largest
independent firms in the country. Sterne, Agee & Leach, Inc. is a division of Sterne Agee Group, Inc., which also includes The Trust
Company of Sterne, Agee & Leach, Inc.; Sterne Agee Asset Management, Inc.; Sterne Agee Clearing, Inc.; and Sterne Agee Financial
Services, Inc.—www.sterneagee.com

                                              EQUITY CAPITAL MARKETS ADMINISTRATION
Ryan Medo           Managing Dir., Eq. Cap. Mkts.     (205) 949-3623     David Lee                 Director, Equity Products          (205) 949-3689
Robert Lake         Vice President                    (205) 949-3624     Yan Chao                  Associate                          (205) 949-3622
                                                                         Chuck Carlisle            Sr. Portfolio Analyst              (205) 949-3571


                                                           EQUITY RESEARCH
                                      Robert Hoehn      Director of Research                  (212) 338-4731

CONSUMER                                                                       FINANCIAL SERVICES (CONT.)
 Apparel Retailing & Toys                                                        Life Insurance
  Margaret Whitfield            SVP, Sr. Analyst      (973) 519-1019             John M. Nadel                  Mng. Dir.               (212) 338-4717
  Jennifer Milan                VP, Analyst           (212) 763-8211             Jason Weyeneth, CFA            Analyst                 (212) 763-8293
                                                                                 Dennis Zavolock                Associate               (212) 338-4748
  Educational Services / Interactive Entertainment
  Arvind Bhatia, CFA            Mng. Dir.             (214) 702-4001             Mortgage Finance & Specialty Finance
  Luke Shagets                  Analyst               (214) 702-4030             Henry J. Coffey, Jr., CFA      SVP, Sr. Analyst        (615) 760-1472
                                                                                 John Sites, CFA                Associate               (615) 760-1470
  Footwear & Apparel
  Sam Poser                     SVP, Sr. Analyst      (212) 763-8226           GLOBAL INDUSTRIAL INFRASTRUCTURE (GII)
  Kenneth M. Stumphauzer        Analyst               (212) 763-8287            ACME &Latin America
                                                                                 Lawrence T. De Maria, CFA      SVP, Sr. Analyst        (212) 338-4704
  Leisure & Entertainment                                                        Ben Elias, CFA                 VP, Sr. Analyst         (212) 338-4706
  David Bain                    Mng. Dir.             (949) 721-6651
  Sherry Yin                    Associate             (949) 721-6651             Building, Power & Water Infrastructure
                                                                                 Michael J. Coleman, CFA        VP, Sr. Analyst         (212) 338-4718
  Restaurants
  Lynne Collier                 Mng. Dir.             (214) 702-4045             Engineering and Construction
  Philip May                    Analyst               (214) 702-4004             Chase Jacobson                 VP, Sr. Analyst         (212) 338-4753

ENERGY                                                                           Multi-Industry
  Oilfield Services & Equipment                                                  Nicholas P. Heymann            Mng. Dir.               (212) 338-4703
  David S. Havens               Mng. Dir.             (212) 763-8238             Samuel H. Eisner               Analyst                 (212) 338-4705
  Karl Sowislo                  Analyst               (212) 338-4732             Paul A. Dircks                 Analyst                 (212) 338-4725
                                                                                 Jordan Calabrese               Associate               (212) 338-4729
FINANCIAL SERVICES
                                                                               TRANSPORTATION, SERVICES & EQUIPMENT
  Banks & Thrifts
                                                                                 Jeffrey A. Kauffman            Mng. Dir.               (212) 338-4765
  James M. Schutz               Dir. of Fin. Ser.     (864) 241-3384
                                                                                 Sal Vitale                     Analyst                 (212) 338-4766
  John Schutz                   Associate             (502) 420-4015
                                                                                 Kanchana Pinnapureddy          Associate               (212) 338-4767
  Adam Barkstrom, CFA           Mng. Dir.             (800) 906-0577
  Blair Brantley, CFA           Analyst               (800) 621-8635
  Matthew Kelley                Mng. Dir.             (207) 699-5800           ADMINISTRATION
  Mike I. Shafir                VP, Sr. Analyst       (212) 763-8239             Carlo Francisco                Supervisory Analyst     (914) 434-3451
  Matthew Breese                Analyst               (207) 699-5800             Marianne Pence                 Mgr., Res. Admin.       (205) 949-3618
  Edward D. Timmons             SVP, Sr. Analyst      (800) 203-5332             Nathan Mitchell                Editor                  (205) 949-3635
  Brett Rabatin, CFA            SVP, Sr. Analyst      (877) 457-8625             Elizabeth Koch                 Editor                  (615) 289-4122
  Kenneth James                 Analyst               (615) 760-1474
  Peyton Green                  Mng. Dir.             (877) 492-2663
  Michael Lipman                Analyst               (615) 269-7323




Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)
                                                                 SALES & TRADING

                                  Steve Pokorny       Head of Institutional Sales         (214) 702-4020
                                  JT Cacciabaudo      Head of Trading                     (212) 763-8288

ATLANTA                                       DALLAS                                         NEW YORK (cont.)
Adam Aspes               (404) 812-3068       Jennifer Elkins            (214) 702-4050      Brian Haise           (212) 763-8206
Adam Kramer              (404) 814-3902       Mary Foster                (214) 702-4009      Jeff Hood             (212) 490-1453
Joe Maloney              (404) 814-3942       Dan Griffith               (214) 702-4044      Alex Jones            (212) 338-4701
Jamie Pennington         (404) 814-3948       Candace Martin             (214) 702-4033      Carey Kaufman         (212) 763-8274
John T. Riley            (404) 814-3966       Bob Nasi                   (214) 702-4017      Konrad Krill          (212) 763-8218
                                              John Schwalenberg          (214) 702-4010      Robert McGuire        (212) 763-8236
BIRMINGHAM                                                                                   Adam Merlo            (212) 763-8232
Gary Hagstrom            (205) 380-1782       MINNEAPOLIS                                    John Molster          (212) 763-8210
Sam Haskell              (205) 380-1781       Randy Mason                (952) 820-4461      Jake Morton           (212) 763-8261
Scott Hughen             (205) 380-1764       John Regan III             (952) 841-6408      Michael Newman        (212) 763-8258
Claude Preston           (205) 380-1762                                                      Matt O’Kelly          (212) 763-8227
Amber Spitzer            (205) 380-1761       NEW ORLEANS                                    David O’Shea          (212) 763-8260
Wyatt Weems              (205) 949-3589                                                      Jon Palan             (212) 763-8225
                                              Patrick Donnelly           (504) 636-4902
                                                                                             Bruce Rae             (212) 763-8271
                                              Cheryl Grabert             (504) 636-4911
BOSTON                                                                                       Jon Schenk            (212) 763-8221
                                              John Regan, Jr.            (850) 650-5676
                                                                                             Chuck Schroeder       (212) 763-8264
Richard Gill             (617) 478-5006
                                                                                             Jason Scott           (212) 763-8215
Tom Goode                (617) 478-5008       NEW YORK
                                                                                             Miko Tam              (212) 763-8252
Ian Moran                (617) 478-5003       Jason Barber               (212) 763-8219      Scott Tashman         (212) 763-8256
Ted Sheehan              (617) 478-5003       Andrew Benenson            (212) 763-8246
Mike Roncone             (617) 478-5001       Adam Cavise                (212) 763-8292
Nicholas White           (617) 478-5002                                                      SAN FRANCISCO
                                              Mike Cline                 (212) 763-8268
                                                                                             Justin Brennan        (415) 362-6140
                                              Tom Criscoula              (212) 338-4719
CHICAGO                                                                                      Tom Cervantez         (415) 362-7430
                                              Noel Cueto                 (212) 763-8251
                                                                                             Chris Larson          (415) 362-6142
Mark Burrier             (312) 525-8425       Enrico DeMatt              (212) 338-4724
                                                                                             Naghmeh Rabii         (415) 362-6141
Jennifer Crall           (312) 525-8423       Geri DeVito                (212) 763-8242
                                                                                             Rob Salomon           (415) 362-7432
Scott Hallermann         (312) 525-8421       Eric Dusansky              (212) 763-8231
Scott Hootman            (312) 525-8426       Mike Flanagan              (212) 763-8282
Robert Hurley            (312) 525-8440       Rich Gallagher             (212) 763-8260
Vesna Radovic            (312) 525-8429
Dan Roesner              (312) 525-8433
Curt Thompson            (312) 525-8427


                                                     INVESTMENT BANKING
Mark Behrman, Mng. Dir.                         (212) 763-8286         Kimberlee Taylor, Admin. Asst.             (212) 338-4715



FINANCIAL INSTITUTIONS GROUP                                          NON-FINANCIALS
Michael J. O’Boyle, Mng. Dir.                   (205) 949-3592        John Bolebruch, Mng. Dir. – Industrials     (212) 338-4716
Michael Perry, Mng. Dir.                        (212) 338-4736        Richard Cunniffe, SVP – Industrials         (212) 338-4713
Robert P. Hutchinson, Mng. Dir.                 (617) 478-5011        Everett Titus III, Mng. Dir – Energy        (908) 730-7882
Jeffrey W. Prochnow, CFA, SVP                   (402) 778-5054        Will Brooke, Analyst - Industrials          (212) 763-8278
D. Timothy Speegle, SVP                         (205) 380-1720
John McCrory, SVP                               (205) 949-3664        EQUITY SYNDICATE
Robert Toma, VP                                 (617) 478-5005        Craig B. Jampol, Mng. Dir.                  (212) 338-4708
Horacio Barakat, VP                             (212) 338-4768
Andrew Stager, Associate                        (617) 478-5009
Nathan Strall, Associate                        (617) 478-5010
Jung Lee, Associate                             (212) 338-4769
Michael Stern, Analyst                          (212) 338-4756


Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)
                                                             LOCATIONS


      Corporate Headquarters                               13727 Noel Road                             12020 Shamrock Plaza
                                                                 th
     800 Shades Creek Parkway                                  7 Floor                                        Suite 200
             Suite 700                                    Dallas, TX 75240                             Omaha, NE 68154-3537
       Birmingham, AL 35209                                 (972) 239-4806                                 (402) 778-5054
                                                            (800) 404-2226                               (402) 778-5135 fax
 (205) 949-3500     (800) 239-2408
         (205) 802-1414 fax                               (972) 980-7125 fax
                                                                                                       620 Newport Center Dr.
                                                                                                             Suite 1100
       OTHER LOCATIONS                                706 E. Washington Street
                                                       Greenville, SC 29601                          Newport Beach, CA 92660
                                                           (864) 233-6630                                  (949) 721-6651
          3475 Lenox Road                                (864) 233-6630 fax                              (949) 721-6652 fax
              Suite 800
         Atlanta, GA 30326
           (404) 365-9630                              3100 West End Avenue                                  2 Union Street
         (404) 812-3097 fax                                  Suite 930                                         Suite 403
                                                        Nashville, TN 37203                              Portland, ME 04101
                                                          (615) 269-7323                                    (207) 699-5800
  8400 Normandale Lake Boulevard                          (615) 269-9223                                  (207) 699-5888 fax
             Suite 920
     Bloomington, MN 55437
          (952) 841-6410                                                                                5609 Patterson Avenue
                                                           639 Loyola Ave
          (800) 949-4102                                                                                        Suite B
                                                              Suite 200
                                                       New Orleans, LA 70113                            Richmond, VA 23226
                                                           (504) 299-1021                                   (804) 521-3224
         265 Franklin Street                                                                              (804) 521-3199 fax
                                                           (888) 978-3763
              Suite 310
                                                         (504) 299-0956 fax
         Boston, MA 02110
           (617) 478-5000
           (800) 836-4616                                                                                One Maritime Plaza
                                                        2 Grand Central Tower
         (617) 443-0310 fax                                                                                  Suite 1940
                                                         140 East 45th Street
                                                                                                      San Francisco, CA 94111
                                                              18th Floor
                                                                                                           (415) 362-7430
                                                        New York, NY 10017
         123 N. Wacker Drive                                                                             (415) 362-7436 fax
                                                            (212) 763-8224
              Suite 1250
                                                            (800) 966-0814
         Chicago, IL 60606
                                                          (212) 763-8201 fax
            (312) 525-8440
            (800) 966-0815
          (312) 525-8438 fax




Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)

				
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