Cummins Reports Strong Second Quarter 2023 Results
- Cummins Inc. achieved record second quarter revenues of $8.6 billion, representing a 31% increase from the same period last year.
- Net income attributable to Cummins in the second quarter was $720 million, or $5.05 per diluted share, compared to $702 million, or $4.94 per diluted share in 2022.
- The company is maintaining its full year 2023 guidance, expecting revenue to be up 15 to 20 percent and EBITDA of 15.0 to 15.7 percent.
- None.
-
Record second quarter revenues of
; GAAP1 Net Income of$8.6 billion $720 million -
EBITDA in the second quarter was 15.1 percent of sales; Diluted EPS of
$5.05 -
Second quarter results include
, or$23 million per diluted share, of costs related to the separation of Atmus Filtration Technologies Inc.$0.13 - The company is maintaining its full year 2023 guidance, expecting revenue to be up 15 to 20 percent and EBITDA of 15.0 to 15.7 percent.
Second quarter revenues of
“Strong demand across most of our key markets and regions resulted in record revenues and solid profitability for the company in the second quarter of 2023,” said Jennifer Rumsey, Chair and CEO. “We are committed to delivering cycle-over-cycle improvement in financial performance, returning cash to our shareholders and prioritizing investments to continue building our product portfolio to power our customers’ success around the world. I want to thank our Cummins employees who continue to work tirelessly to meet customer needs and respond to the strong demand levels by ensuring quality products, strengthening our customer relationships, and navigating continued supply chain constraints.”
Net income attributable to Cummins in the second quarter was
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were
2023 Outlook:
Based on its current forecast, Cummins is maintaining its full year 2023 revenue guidance to be up 15 to 20 percent due to strong demand across most markets, especially
The outlook above includes the projected results of the Meritor business for 2023. The outlook assumes the inclusion of Atmus for the entirety of 2023, but excludes any costs or benefits associated with the planned separation of the business. Within the Components Segment, Cummins expects revenues of the Meritor business for 2023 to be between
The company plans to continue to generate strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50 percent of operating cash flow back to shareholders. In the near term, we will focus on reinvesting for profitable growth, advancing dividends and reducing debt.
“While we see demand remaining strong through 2023 and we are maintaining our guidance on revenue and profitability, we continue to closely monitor global economic indicators. Should economic momentum slow, Cummins will remain in a strong position to keep investing in future growth, bringing new technologies to customers as we advance our Destination Zero strategy, and returning cash to shareholders,” said Rumsey.
Recent Highlights:
-
Progress continues to be made on the separation of the Filtration business. On May 26th, Atmus Filtration Technologies Inc. shares began trading on the New York Stock Exchange (NYSE) under the ticker symbol “ATMU” in connection with the initial public offering (IPO). Upon completion of the IPO, Cummins retained approximately
80.5% of Atmus’ outstanding shares. The Atmus IPO generated of net proceeds and Atmus added$299 million of debt. Cummins realizes the benefits of the IPO proceeds and the debt issuance, as Atmus will hold the debt at full separation.$650 million
-
Cummins announced two significant milestones with the 5 millionth engine produced at its Rocky Mount Engine Plant (RMEP) in
North Carolina and the 2.5 millionth engine produced at its Jamestown Engine Plant (JEP) inNew York . The 5 millionth milestone engine was a B6.7, which was received by Daimler, who provided it to Penske. The 2.5 millionth engine at JEP was the new 15-liter natural gas product and provided to Kenworth.
-
On April 3rd, United States President Joe Biden visited company facilities in
Fridley, Minnesota (USA), to tour Accelera by Cummins’ firstU.S. manufacturing location for electrolyzers, a key technology to produce low- and no-carbon hydrogen. The official ribbon cutting on May 19th marked the start of electrolyzer production inthe United States . Accelera is initially dedicating 89,000 sq. ft. of the existing Cummins power generation facility inFridley to electrolyzer production.
-
In the second quarter, Accelera reached a milestone of backlog electrolyzer orders totaling over
. The$500 million Fridley facility will help address that growing demand along with other capacity being added globally.
-
Cummins signed a definitive agreement with Tata Motors Limited (TML), to manufacture a range of low- to zero-emissions technology products in
India over the next few years. As a part of this agreement, Cummins and TML have set up a new business entity called TCPL Green Energy Solutions Private Limited (GES), a wholly owned subsidiary under the existing joint venture with a focus on the development and manufacturing of sustainable technology products that will include hydrogen-powered internal combustion engines, fuel delivery systems, and battery electric powertrains and fuel cell electric systems through the Accelera™ by Cummins brand.
- Cummins received a 2023 Energy Management Insight Award from the Clean Energy Ministerial. The award recognizes organizations demonstrating the benefits of energy management systems and meeting the ISO 50001 international energy standard.
-
Cummins announced an increase in the quarterly common stock cash dividend from
to$1.57 per share. The company has increased the quarterly dividend to shareholders for 14 consecutive years.$1.68
1 Generally Accepted Accounting Principles in the
Second quarter 2023 detail (all comparisons to same period in 2022):
Components Segment
-
Sales -
, up 76 percent$3.4 billion -
Segment EBITDA -
, or 14.2 percent of sales, which includes$486 million of costs related to the separation of Atmus compared to$18 million , or 18.1 percent of sales, which includes$352 million of benefits from adjusting the reserves related to the indefinite suspension of operations in$2 million Russia . The decline in EBITDA percentage was driven primarily by the addition of Meritor, which has a dilutive impact on the segment despite its improvement in the second quarter. -
Revenues in
North America increased by 70 percent and international sales increased by 84 percent due to the addition of Meritor and increased global demand.
Engine Segment
-
Sales -
, up 8 percent$3.0 billion -
Segment EBITDA -
, or 14.2 percent of sales, compared to$425 million or 15.2 percent of sales, which included$421 million of costs from the indefinite suspension of operations in$1 million Russia - On-highway revenues increased 7 percent driven by strong demand in the North American truck market and pricing actions.
-
Sales increased 7 percent in
North America and grew 10 percent in international markets due to an increase in global demand.
Distribution Segment
-
Sales -
, up 15 percent$2.6 billion -
Segment EBITDA -
, or 11.5 percent of sales, compared to$299 million , or 13.2 percent of sales, a year ago when results included$297 million of benefits from adjusting the reserves related to the indefinite suspension of operations in$45 million Russia -
Revenues in
North America increased 20 percent and international sales increased by 5 percent. - Higher revenues were driven by increased demand for whole goods, especially power generation products, and pricing actions.
Power Systems Segment
-
Sales -
, up 21 percent$1.5 billion -
Segment EBITDA -
, or 13.8 percent of sales, compared to$201 million , or 10.6 percent of sales, which included$128 million of benefit from adjusting the reserves related to the indefinite suspension of operations in$1 million Russia -
Second quarter results also included
of costs related to severance costs related to transformation efforts within the segment.$18 million - Power generation revenues increased 30 percent driven by increased global demand and pricing actions. Industrial revenues increased 9 percent due to increased demand in mining and oil and gas markets.
Accelera Segment
-
Sales -
, up 102 percent$85 million -
Segment EBITDA loss -
$114 million - Revenues increased due to higher demand for battery electric systems in the North American school bus market and the additions of the electric powertrain portion of the Meritor business and Siemens Commercial Vehicle business.
- Costs associated with the development of electric powertrains, fuel cells and electrolyzers, as well as products to support battery electric vehicles are contributing to EBITDA losses. The company continues to make investments to support our customers through the energy transition and deliver future profitable growth.
About Cummins Inc.
Cummins Inc., a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, electric powertrains, hydrogen production and fuel cell products. Headquartered in
Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our 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: any adverse results of our internal review into our emissions certification process and compliance with emission standards; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; evolving environmental and climate change legislation and regulatory initiatives; future bans or limitations on the use of diesel-powered products; failure to successfully integrate and / or failure to fully realize all of the anticipated benefits of the acquisition of Meritor, Inc.; raw material, transportation and labor price fluctuations and supply shortages; any adverse effects of the conflict between
Presentation of Non-GAAP Financial Information
EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded from the non-GAAP outlook measure. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.
Webcast information
Cummins management will host a teleconference to discuss these results today at 10 a.m. EDT. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.
CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) (a) |
||||||||
|
|
|
||||||
|
|
Three months ended |
||||||
|
|
June 30, |
||||||
In millions, except per share amounts |
|
2023 |
|
2022 |
||||
NET SALES |
|
$ |
8,638 |
|
$ |
6,586 |
|
|
Cost of sales |
|
|
6,490 |
|
|
|
4,860 |
|
GROSS MARGIN |
|
|
2,148 |
|
|
|
1,726 |
|
OPERATING EXPENSES AND INCOME |
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
873 |
|
|
|
622 |
|
Research, development and engineering expenses |
|
|
384 |
|
|
|
299 |
|
Equity, royalty and interest income from investees |
|
|
133 |
|
|
|
95 |
|
Other operating expense, net |
|
|
27 |
|
|
|
3 |
|
OPERATING INCOME |
|
|
997 |
|
|
|
897 |
|
Interest expense |
|
|
99 |
|
|
|
34 |
|
Other income (expense), net |
|
|
51 |
|
|
|
(8 |
) |
INCOME BEFORE INCOME TAXES |
|
|
949 |
|
|
|
855 |
|
Income tax expense |
|
|
212 |
|
|
|
148 |
|
CONSOLIDATED NET INCOME |
|
|
737 |
|
|
|
707 |
|
Less: Net income attributable to noncontrolling interests |
|
|
17 |
|
|
|
5 |
|
NET INCOME ATTRIBUTABLE TO CUMMINS INC. |
|
$ |
720 |
|
|
$ |
702 |
|
|
|
|
|
|
||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. |
|
|
|
|
||||
Basic |
|
$ |
5.08 |
|
|
$ |
4.97 |
|
Diluted |
|
$ |
5.05 |
|
|
$ |
4.94 |
|
|
|
|
|
|
||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
||||
Basic |
|
|
141.7 |
|
|
|
141.2 |
|
Diluted |
|
|
142.5 |
|
|
|
142.0 |
|
|
|
|
|
|
||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in |
|
|
Six months ended |
||||||
|
|
June 30, |
||||||
In millions, except per share amounts |
|
2023 |
|
2022 |
||||
NET SALES |
|
$ |
17,091 |
|
$ |
12,971 |
|
|
Cost of sales |
|
|
12,914 |
|
|
|
9,713 |
|
GROSS MARGIN |
|
|
4,177 |
|
|
|
3,258 |
|
OPERATING EXPENSES AND INCOME |
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
1,626 |
|
|
|
1,237 |
|
Research, development and engineering expenses |
|
|
734 |
|
|
|
597 |
|
Equity, royalty and interest income from investees |
|
|
252 |
|
|
|
191 |
|
Other operating expense, net |
|
|
46 |
|
|
|
114 |
|
OPERATING INCOME |
|
|
2,023 |
|
|
|
1,501 |
|
Interest expense |
|
|
186 |
|
|
|
51 |
|
Other income (expense), net |
|
|
141 |
|
|
|
(17 |
) |
INCOME BEFORE INCOME TAXES |
|
|
1,978 |
|
|
|
1,433 |
|
Income tax expense |
|
|
435 |
|
|
|
303 |
|
CONSOLIDATED NET INCOME |
|
|
1,543 |
|
|
|
1,130 |
|
Less: Net income attributable to noncontrolling interests |
|
|
33 |
|
|
|
10 |
|
NET INCOME ATTRIBUTABLE TO CUMMINS INC. |
|
$ |
1,510 |
|
|
$ |
1,120 |
|
|
|
|
|
|
||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC. |
|
|
|
|
||||
Basic |
|
$ |
10.66 |
|
|
$ |
7.90 |
|
Diluted |
|
$ |
10.60 |
|
|
$ |
7.86 |
|
|
|
|
|
|
||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
||||
Basic |
|
|
141.6 |
|
|
|
141.7 |
|
Diluted |
|
|
142.5 |
|
|
|
142.5 |
|
|
|
|
|
|
||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in |
CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (a) |
||||||||
|
|
|
|
|
||||
In millions, except par value |
|
June 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,802 |
|
|
$ |
2,101 |
|
Marketable securities |
|
|
512 |
|
|
|
472 |
|
Total cash, cash equivalents and marketable securities |
|
|
2,314 |
|
|
|
2,573 |
|
Accounts and notes receivable, net |
|
|
5,863 |
|
|
|
5,202 |
|
Inventories |
|
|
6,026 |
|
|
|
5,603 |
|
Prepaid expenses and other current assets |
|
|
1,207 |
|
|
|
1,073 |
|
Total current assets |
|
|
15,410 |
|
|
|
14,451 |
|
Long-term assets |
|
|
|
|
||||
Property, plant and equipment, net |
|
|
5,723 |
|
|
|
5,521 |
|
Investments and advances related to equity method investees |
|
|
1,861 |
|
|
|
1,759 |
|
Goodwill |
|
|
2,404 |
|
|
|
2,343 |
|
Other intangible assets, net |
|
|
2,584 |
|
|
|
2,687 |
|
Pension assets |
|
|
1,523 |
|
|
|
1,398 |
|
Other assets |
|
|
2,230 |
|
|
|
2,140 |
|
Total assets |
|
$ |
31,735 |
|
|
$ |
30,299 |
|
|
|
|
|
|
||||
LIABILITIES |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable (principally trade) |
|
$ |
4,308 |
|
|
$ |
4,252 |
|
Loans payable |
|
|
419 |
|
|
|
210 |
|
Commercial paper |
|
|
1,617 |
|
|
|
2,574 |
|
Current maturities of long-term debt |
|
|
575 |
|
|
|
573 |
|
Accrued compensation, benefits and retirement costs |
|
|
721 |
|
|
|
617 |
|
Current portion of accrued product warranty |
|
|
751 |
|
|
|
726 |
|
Current portion of deferred revenue |
|
|
1,017 |
|
|
|
1,004 |
|
Other accrued expenses |
|
|
1,637 |
|
|
|
1,465 |
|
Total current liabilities |
|
|
11,045 |
|
|
|
11,421 |
|
Long-term liabilities |
|
|
|
|
||||
Long-term debt |
|
|
5,089 |
|
|
|
4,498 |
|
Deferred revenue |
|
|
939 |
|
|
|
844 |
|
Other liabilities |
|
|
3,306 |
|
|
|
3,311 |
|
Total liabilities |
|
$ |
20,379 |
|
|
$ |
20,074 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
$ |
— |
|
|
$ |
258 |
|
|
|
|
|
|
||||
EQUITY |
|
|
|
|
||||
Cummins Inc. shareholders’ equity |
|
|
|
|
||||
Common stock, |
|
$ |
2,532 |
|
|
$ |
2,243 |
|
Retained earnings |
|
|
19,102 |
|
|
|
18,037 |
|
Treasury stock, at cost, 80.9 and 81.2 shares |
|
|
(9,380 |
) |
|
|
(9,415 |
) |
Accumulated other comprehensive loss |
|
|
(1,917 |
) |
|
|
(1,890 |
) |
Total Cummins Inc. shareholders’ equity |
|
|
10,337 |
|
|
|
8,975 |
|
Noncontrolling interests |
|
|
1,019 |
|
|
|
992 |
|
Total equity |
|
$ |
11,356 |
|
|
$ |
9,967 |
|
Total liabilities, redeemable noncontrolling interests and equity |
|
$ |
31,735 |
|
|
$ |
30,299 |
|
|
|
|
|
|
||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in |
CUMMINS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (a) |
||||||||
|
|
|
||||||
|
|
Three months ended |
||||||
|
|
June 30, |
||||||
In millions |
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Consolidated net income |
|
$ |
737 |
|
|
$ |
707 |
|
Adjustments to reconcile consolidated net income to net cash provided by operating activities |
|
|
||||||
Depreciation and amortization |
|
|
257 |
|
|
|
167 |
|
Deferred income taxes |
|
|
(94 |
) |
|
|
(46 |
) |
Equity in income of investees, net of dividends |
|
|
(46 |
) |
|
|
14 |
|
Pension and OPEB expense |
|
|
2 |
|
|
|
8 |
|
Pension contributions and OPEB payments |
|
|
(11 |
) |
|
|
(12 |
) |
Russian suspension recoveries |
|
|
— |
|
|
|
(47 |
) |
(Gain) loss on corporate owned life insurance |
|
|
(1 |
) |
|
|
48 |
|
Foreign currency remeasurement and transaction exposure |
|
|
(48 |
) |
|
|
(3 |
) |
Changes in current assets and liabilities, net of acquisitions |
|
|
|
|
||||
Accounts and notes receivable |
|
|
(14 |
) |
|
|
165 |
|
Inventories |
|
|
(140 |
) |
|
|
(209 |
) |
Other current assets |
|
|
5 |
|
|
|
(8 |
) |
Accounts payable |
|
|
(316 |
) |
|
|
(58 |
) |
Accrued expenses |
|
|
110 |
|
|
|
(30 |
) |
Changes in other liabilities |
|
|
11 |
|
|
|
(81 |
) |
Other, net |
|
|
31 |
|
|
|
(16 |
) |
Net cash provided by operating activities |
|
|
483 |
|
|
|
599 |
|
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Capital expenditures |
|
|
(221 |
) |
|
|
(147 |
) |
Acquisitions of businesses, net of cash acquired |
|
|
(134 |
) |
|
|
(328 |
) |
Investments in marketable securities—acquisitions |
|
|
(322 |
) |
|
|
(236 |
) |
Investments in marketable securities—liquidations |
|
|
275 |
|
|
|
207 |
|
Other, net |
|
|
24 |
|
|
|
(62 |
) |
Net cash used in investing activities |
|
|
(378 |
) |
|
|
(566 |
) |
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Proceeds from borrowings |
|
|
694 |
|
|
|
42 |
|
Net (payments) borrowings of commercial paper |
|
|
(629 |
) |
|
|
394 |
|
Payments on borrowings and finance lease obligations |
|
|
(86 |
) |
|
|
(47 |
) |
Dividend payments on common stock |
|
|
(223 |
) |
|
|
(204 |
) |
Repurchases of common stock |
|
|
— |
|
|
|
(36 |
) |
Other, net |
|
|
4 |
|
|
|
(43 |
) |
Net cash (used in) provided by financing activities |
|
|
(240 |
) |
|
|
106 |
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
(43 |
) |
|
|
47 |
|
Net (decrease) increase in cash and cash equivalents |
|
|
(178 |
) |
|
|
186 |
|
Cash and cash equivalents at beginning of period |
|
|
1,980 |
|
|
|
2,276 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
1,802 |
|
|
$ |
2,462 |
|
|
|
|
|
|
||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in |
|
|
|
Six months ended |
||||||
|
|
June 30, |
||||||
In millions |
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Consolidated net income |
|
$ |
1,543 |
|
|
$ |
1,130 |
|
Adjustments to reconcile consolidated net income to net cash provided by operating activities |
|
|
|
|
||||
Depreciation and amortization |
|
|
503 |
|
|
|
328 |
|
Deferred income taxes |
|
|
(132 |
) |
|
|
(112 |
) |
Equity in income of investees, net of dividends |
|
|
(113 |
) |
|
|
(62 |
) |
Pension and OPEB expense |
|
|
3 |
|
|
|
17 |
|
Pension contributions and OPEB payments |
|
|
(103 |
) |
|
|
(55 |
) |
Russian suspension costs, net of recoveries |
|
|
— |
|
|
|
111 |
|
(Gain) loss on corporate owned life insurance |
|
|
(20 |
) |
|
|
85 |
|
Foreign currency remeasurement and transaction exposure |
|
|
(59 |
) |
|
|
(10 |
) |
Changes in current assets and liabilities, net of acquisitions |
|
|
|
|
||||
Accounts and notes receivable |
|
|
(635 |
) |
|
|
(252 |
) |
Inventories |
|
|
(403 |
) |
|
|
(498 |
) |
Other current assets |
|
|
(137 |
) |
|
|
(65 |
) |
Accounts payable |
|
|
65 |
|
|
|
426 |
|
Accrued expenses |
|
|
261 |
|
|
|
(281 |
) |
Changes in other liabilities |
|
|
75 |
|
|
|
(11 |
) |
Other, net |
|
|
130 |
|
|
|
12 |
|
Net cash provided by operating activities |
|
|
978 |
|
|
|
763 |
|
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Capital expenditures |
|
|
(414 |
) |
|
|
(251 |
) |
Acquisitions of businesses, net of cash acquired |
|
|
(134 |
) |
|
|
(245 |
) |
Investments in marketable securities—acquisitions |
|
|
(648 |
) |
|
|
(433 |
) |
Investments in marketable securities—liquidations |
|
|
620 |
|
|
|
461 |
|
Other, net |
|
|
(30 |
) |
|
|
(108 |
) |
Net cash used in investing activities |
|
|
(606 |
) |
|
|
(576 |
) |
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Proceeds from borrowings |
|
|
737 |
|
|
|
56 |
|
Net (payments) borrowings of commercial paper |
|
|
(658 |
) |
|
|
392 |
|
Payments on borrowings and finance lease obligations |
|
|
(228 |
) |
|
|
(71 |
) |
Dividend payments on common stock |
|
|
(445 |
) |
|
|
(411 |
) |
Repurchases of common stock |
|
|
— |
|
|
|
(347 |
) |
Other, net |
|
|
(9 |
) |
|
|
(10 |
) |
Net cash used in financing activities |
|
|
(603 |
) |
|
|
(391 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
(68 |
) |
|
|
74 |
|
Net decrease in cash and cash equivalents |
|
|
(299 |
) |
|
|
(130 |
) |
Cash and cash equivalents at beginning of year |
|
|
2,101 |
|
|
|
2,592 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
1,802 |
|
|
$ |
2,462 |
|
|
|
|
|
|
||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in |
CUMMINS INC. AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
In millions |
|
Components |
|
Engine |
|
Distribution |
|
Power Systems |
|
Accelera |
|
Total Segments |
|
Intersegment
|
|
Total |
||||||||||||||||
Three months ended June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
External sales |
|
$ |
2,924 |
|
|
$ |
2,263 |
|
|
$ |
2,576 |
|
|
$ |
794 |
|
|
$ |
81 |
|
|
$ |
8,638 |
|
|
$ |
— |
|
|
$ |
8,638 |
|
Intersegment sales |
|
|
501 |
|
|
|
725 |
|
|
|
19 |
|
|
|
663 |
|
|
|
4 |
|
|
|
1,912 |
|
|
|
(1,912 |
) |
|
|
— |
|
Total sales |
|
|
3,425 |
|
|
|
2,988 |
|
|
|
2,595 |
|
|
|
1,457 |
|
|
|
85 |
|
|
|
10,550 |
|
|
|
(1,912 |
) |
|
|
8,638 |
|
Research, development and engineering expenses |
|
|
103 |
|
|
|
148 |
|
|
|
15 |
|
|
|
66 |
|
|
|
52 |
|
|
|
384 |
|
|
|
— |
|
|
|
384 |
|
Equity, royalty and interest income (loss) from investees |
|
|
24 |
|
|
|
71 |
|
|
|
24 |
|
|
|
18 |
|
|
|
(4 |
) |
|
|
133 |
|
|
|
— |
|
|
|
133 |
|
Interest income |
|
|
7 |
|
|
|
7 |
|
|
|
8 |
|
|
|
2 |
|
|
|
1 |
|
|
|
25 |
|
|
|
— |
|
|
|
25 |
|
EBITDA (2) |
|
|
486 |
|
(3) |
|
425 |
|
|
|
299 |
|
|
|
201 |
|
|
|
(114 |
) |
|
|
1,297 |
|
|
|
7 |
|
|
|
1,304 |
|
Depreciation and amortization (4) |
|
|
125 |
|
|
|
56 |
|
|
|
28 |
|
|
|
32 |
|
|
|
15 |
|
|
|
256 |
|
|
|
— |
|
|
|
256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
EBITDA as a percentage of segment sales |
|
|
14.2 |
% |
|
|
14.2 |
% |
|
|
11.5 |
% |
|
|
13.8 |
% |
|
|
NM |
|
|
|
12.3 |
% |
|
|
|
|
15.1 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Three months ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
External sales |
|
$ |
1,477 |
|
|
$ |
2,092 |
|
|
$ |
2,247 |
|
|
$ |
734 |
|
|
$ |
36 |
|
|
$ |
6,586 |
|
|
$ |
— |
|
|
$ |
6,586 |
|
Intersegment sales |
|
|
473 |
|
|
|
683 |
|
|
|
6 |
|
|
|
469 |
|
|
|
6 |
|
|
|
1,637 |
|
|
|
(1,637 |
) |
|
|
— |
|
Total sales |
|
|
1,950 |
|
|
|
2,775 |
|
|
|
2,253 |
|
|
|
1,203 |
|
|
|
42 |
|
|
|
8,223 |
|
|
|
(1,637 |
) |
|
|
6,586 |
|
Research, development and engineering expenses |
|
|
73 |
|
|
|
116 |
|
|
|
13 |
|
|
|
58 |
|
|
|
39 |
|
|
|
299 |
|
|
|
— |
|
|
|
299 |
|
Equity, royalty and interest income (loss) from investees |
|
|
9 |
|
|
|
58 |
|
|
|
21 |
|
|
|
10 |
|
|
|
(3 |
) |
|
|
95 |
|
|
|
— |
|
|
|
95 |
|
Interest income |
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
7 |
|
Russian suspension (recoveries) costs |
|
|
(2 |
) |
|
|
1 |
|
|
|
(45 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(47 |
) |
|
|
— |
|
|
|
(47 |
) |
EBITDA (2) |
|
|
352 |
|
|
|
421 |
|
|
|
297 |
|
|
|
128 |
|
|
|
(79 |
) |
|
|
1,119 |
|
|
|
(64 |
) |
|
|
1,055 |
|
Depreciation and amortization (4) |
|
|
49 |
|
|
|
49 |
|
|
|
29 |
|
|
|
31 |
|
|
|
8 |
|
|
|
166 |
|
|
|
— |
|
|
|
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
EBITDA as a percentage of segment sales |
|
|
18.1 |
% |
|
|
15.2 |
% |
|
|
13.2 |
% |
|
|
10.6 |
% |
|
|
NM |
|
|
|
13.6 |
% |
|
|
|
|
16.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
"NM" - not meaningful information |
||||||||||||||||||||||||||||||||
(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended June 30, 2023 and 2022, except for |
||||||||||||||||||||||||||||||||
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. |
||||||||||||||||||||||||||||||||
(3) Includes |
||||||||||||||||||||||||||||||||
(4) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. A portion of depreciation expense is included in research, development and engineering expenses. |
In millions |
|
Components |
|
Engine |
|
Distribution |
|
Power Systems |
|
Accelera |
|
Total Segments |
|
Intersegment
|
|
Total |
||||||||||||||||
Six months ended June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
External sales |
|
$ |
5,967 |
|
|
$ |
4,515 |
|
|
$ |
4,975 |
|
|
$ |
1,473 |
|
|
$ |
161 |
|
|
$ |
17,091 |
|
|
$ |
— |
|
|
$ |
17,091 |
|
Intersegment sales |
|
|
1,015 |
|
|
|
1,459 |
|
|
|
26 |
|
|
|
1,327 |
|
|
|
9 |
|
|
|
3,836 |
|
|
|
(3,836 |
) |
|
|
— |
|
Total sales |
|
|
6,982 |
|
|
|
5,974 |
|
|
|
5,001 |
|
|
|
2,800 |
|
|
|
170 |
|
|
|
20,927 |
|
|
|
(3,836 |
) |
|
|
17,091 |
|
Research, development and engineering expenses |
|
|
194 |
|
|
|
282 |
|
|
|
29 |
|
|
|
129 |
|
|
|
100 |
|
|
|
734 |
|
|
|
— |
|
|
|
734 |
|
Equity, royalty and interest income (loss) from investees |
|
|
45 |
|
|
|
136 |
|
|
|
48 |
|
|
|
31 |
|
|
|
(8 |
) |
|
|
252 |
|
|
|
— |
|
|
|
252 |
|
Interest income |
|
|
13 |
|
|
|
10 |
|
|
|
15 |
|
|
|
4 |
|
|
|
1 |
|
|
|
43 |
|
|
|
— |
|
|
|
43 |
|
EBITDA (2) |
|
|
993 |
|
(3) |
|
882 |
|
|
|
634 |
|
|
|
420 |
|
|
|
(208 |
) |
|
|
2,721 |
|
|
|
(56 |
) |
|
|
2,665 |
|
Depreciation and amortization (4) |
|
|
248 |
|
|
|
107 |
|
|
|
56 |
|
|
|
61 |
|
|
|
29 |
|
|
|
501 |
|
|
|
— |
|
|
|
501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
EBITDA as a percentage of total sales |
|
|
14.2 |
% |
|
|
14.8 |
% |
|
|
12.7 |
% |
|
|
15.0 |
% |
|
|
NM |
|
|
|
13.0 |
% |
|
|
|
|
15.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Six months ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
External sales |
|
$ |
2,994 |
|
|
$ |
4,141 |
|
|
$ |
4,358 |
|
|
$ |
1,417 |
|
|
$ |
61 |
|
|
$ |
12,971 |
|
|
$ |
— |
|
|
$ |
12,971 |
|
Intersegment sales |
|
|
944 |
|
|
|
1,387 |
|
|
|
12 |
|
|
|
946 |
|
|
|
12 |
|
|
|
3,301 |
|
|
|
(3,301 |
) |
|
|
— |
|
Total sales |
|
|
3,938 |
|
|
|
5,528 |
|
|
|
4,370 |
|
|
|
2,363 |
|
|
|
73 |
|
|
|
16,272 |
|
|
|
(3,301 |
) |
|
|
12,971 |
|
Research, development and engineering expenses |
|
|
149 |
|
|
|
225 |
|
|
|
26 |
|
|
|
122 |
|
|
|
75 |
|
|
|
597 |
|
|
|
— |
|
|
|
597 |
|
Equity, royalty and interest income (loss) from investees |
|
|
37 |
|
|
|
100 |
|
(5) |
|
37 |
|
|
|
21 |
|
|
|
(4 |
) |
|
|
191 |
|
|
|
— |
|
|
|
191 |
|
Interest income |
|
|
3 |
|
|
|
5 |
|
|
|
5 |
|
|
|
2 |
|
|
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
15 |
|
Russian suspension costs |
|
|
4 |
|
|
|
33 |
|
(6) |
|
55 |
|
|
|
19 |
|
|
|
— |
|
|
|
111 |
|
|
|
— |
|
|
|
111 |
|
EBITDA (2) |
|
|
672 |
|
|
|
811 |
|
|
|
407 |
|
|
|
218 |
|
|
|
(144 |
) |
|
|
1,964 |
|
|
|
(154 |
) |
|
|
1,810 |
|
Depreciation and amortization (4) |
|
|
92 |
|
|
|
100 |
|
|
|
57 |
|
|
|
62 |
|
|
|
15 |
|
|
|
326 |
|
|
|
— |
|
|
|
326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
EBITDA as a percentage of total sales |
|
|
17.1 |
% |
|
|
14.7 |
% |
|
|
9.3 |
% |
|
|
9.2 |
% |
|
|
NM |
|
|
|
12.1 |
% |
|
|
|
|
14.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
"NM" - not meaningful information |
||||||||||||||||||||||||||||||||
(1) Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the six months ended June 30, 2023 and 2022, except for |
||||||||||||||||||||||||||||||||
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. |
||||||||||||||||||||||||||||||||
(3) Includes |
||||||||||||||||||||||||||||||||
(4) Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was |
||||||||||||||||||||||||||||||||
(5) Includes a |
||||||||||||||||||||||||||||||||
(6) Includes |
CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)
EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES
Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:
|
|
Three months ended |
|
Six months ended |
|
||||||||||||
|
|
June 30, |
|
June 30, |
|
||||||||||||
In millions |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||||||
Manufacturing entities |
|
|
|
|
|
|
|
|
|
||||||||
Dongfeng Cummins Engine Company, Ltd. |
|
$ |
18 |
|
$ |
11 |
|
$ |
37 |
|
$ |
27 |
|
||||
Chongqing Cummins Engine Company, Ltd. |
|
|
13 |
|
|
|
7 |
|
|
|
22 |
|
|
|
16 |
|
|
Beijing Foton Cummins Engine Co., Ltd. |
|
|
9 |
|
|
|
14 |
|
|
|
25 |
|
|
|
28 |
|
|
Tata Cummins, Ltd. |
|
|
7 |
|
|
|
5 |
|
|
|
15 |
|
|
|
14 |
|
|
All other manufacturers |
|
|
32 |
|
|
|
13 |
|
|
|
51 |
|
|
|
3 |
|
(1) |
Distribution entities |
|
|
|
|
|
|
|
|
|
||||||||
Komatsu Cummins Chile, Ltda. |
|
|
13 |
|
|
|
12 |
|
|
|
27 |
|
|
|
19 |
|
|
All other distributors |
|
|
4 |
|
|
|
3 |
|
|
|
7 |
|
|
|
5 |
|
|
Cummins share of net income |
|
|
96 |
|
|
|
65 |
|
|
|
184 |
|
|
|
112 |
|
|
Royalty and interest income |
|
|
37 |
|
|
|
30 |
|
|
|
68 |
|
|
|
79 |
|
|
Equity, royalty and interest income from investees |
|
$ |
133 |
|
|
$ |
95 |
|
|
$ |
252 |
|
|
$ |
191 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes a |
DIVESTITURE AND ACQUISITIONS
Divestiture
Formation of Atmus Filtration Technologies Inc. (Atmus) and Initial Public Offering (IPO)
On May 23, 2023, in connection with the Atmus IPO, Cummins issued approximately
In connection with the completion of the IPO, through a series of asset and equity contributions, we transferred the filtration business to Atmus. In exchange, Atmus transferred consideration of approximately
As we still own 80.5 percent of Atmus shares, it remains included in our Condensed Consolidated Financial Statements.
Acquisitions
Hydrogenics Corporation
On June 29, 2023, a share purchase agreement was executed with a 19 percent minority shareholder in one of our businesses, Hydrogenics Corporation (Hydrogenics), whereby we agreed to pay the minority shareholder
Teksid Hierro de
On April 3, 2023, we acquired Teksid Hierro de
Meritor, Inc.
During the second quarter of 2023, we finalized our accounting for the Meritor, Inc. acquisition. The primary components of the change were to increase contingent liabilities by
INCOME TAXES
Our effective tax rate for 2023 is expected to approximate 22.0 percent, excluding any discrete items that may arise.
Our effective tax rate for the three months ended June 30, 2023, was 22.3 percent and contained net unfavorable discrete tax items of
Our effective tax rate for the six months ended June 30, 2023, was 22.0 percent and contained net discrete tax amounts of zero, as the result of offsetting amounts for the first two quarters, primarily due to share-based compensation tax benefits and other discrete items.
Our effective tax rate for the three months ended June 30, 2022, was 17.3 percent and contained favorable discrete tax items of
Our effective tax rate for the six months ended June 30, 2022, was 21.1 percent and contained favorable discrete items of
CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)
Reconciliation of Non GAAP measures - Earnings before interest, income taxes, depreciation and amortization and noncontrolling interests (EBITDA)
We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. We believe EBITDA excluding special items is a useful measure of our operating performance without regard to the costs associated with the IPO and separation of Atmus and indefinite suspension of Russian operations. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of non-cash items that are excluded from the non-GAAP outlook measure.
EBITDA is not in accordance with, or an alternative for, accounting principles generally accepted in
|
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
In millions |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income attributable to Cummins Inc. |
|
$ |
720 |
|
|
$ |
702 |
|
|
$ |
1,510 |
|
|
$ |
1,120 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Cummins Inc. as a percentage of net sales |
|
|
8.3 |
% |
|
|
10.7 |
% |
|
|
8.8 |
% |
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Add: |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling interests |
|
|
17 |
|
|
|
5 |
|
|
|
33 |
|
|
|
10 |
|
Consolidated net income |
|
|
737 |
|
|
|
707 |
|
|
|
1,543 |
|
|
|
1,130 |
|
|
|
|
|
|
|
|
|
|
||||||||
Add: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
99 |
|
|
|
34 |
|
|
|
186 |
|
|
|
51 |
|
Income tax expense |
|
|
212 |
|
|
|
148 |
|
|
|
435 |
|
|
|
303 |
|
Depreciation and amortization |
|
|
256 |
|
|
|
166 |
|
|
|
501 |
|
|
|
326 |
|
EBITDA |
|
$ |
1,304 |
|
|
$ |
1,055 |
|
|
$ |
2,665 |
|
|
$ |
1,810 |
|
|
|
|
|
|
|
|
|
|
||||||||
EBITDA as a percentage of net sales |
|
|
15.1 |
% |
|
|
16.0 |
% |
|
|
15.6 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Add: |
|
|
|
|
|
|
|
|
||||||||
Atmus IPO and separation costs |
|
|
23 |
|
|
|
29 |
|
|
|
41 |
|
|
|
46 |
|
Russian suspension (recoveries) costs |
|
|
— |
|
|
|
(47 |
) |
|
|
— |
|
|
|
111 |
|
|
|
|
|
|
|
|
|
|
||||||||
EBITDA, excluding costs associated with the IPO and separation of Atmus and indefinite suspension of Russian operations |
|
$ |
1,327 |
|
|
$ |
1,037 |
|
|
$ |
2,706 |
|
|
$ |
1,967 |
|
|
|
|
|
|
|
|
|
|
||||||||
EBITDA, excluding costs associated with the IPO and separation of Atmus and indefinite suspension of Russian operations, as a percentage of net sales |
|
|
15.4 |
% |
|
|
15.7 |
% |
|
|
15.8 |
% |
|
|
15.2 |
% |
CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)
Components Segment Sales by Business
In the second quarter of 2023, with the Atmus IPO we changed the name of our filtration business to Atmus. Sales for our Components segment by business, adjusted for the reorganized businesses, were as follows:
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Axles and brakes |
|
$ |
1,272 |
|
$ |
1,249 |
|
$ |
— |
|
$ |
— |
|
$ |
2,521 |
|||||
Emission solutions |
|
|
1,056 |
|
|
|
964 |
|
|
|
— |
|
|
|
— |
|
|
|
2,020 |
|
Engine components |
|
|
581 |
|
|
|
557 |
|
|
|
— |
|
|
|
— |
|
|
|
1,138 |
|
Atmus |
|
|
417 |
|
|
|
417 |
|
|
|
— |
|
|
|
— |
|
|
|
834 |
|
Automated transmissions |
|
|
179 |
|
|
|
179 |
|
|
|
— |
|
|
|
— |
|
|
|
358 |
|
Software and electronics |
|
|
52 |
|
|
|
59 |
|
|
|
— |
|
|
|
— |
|
|
|
111 |
|
Total sales |
|
$ |
3,557 |
|
|
$ |
3,425 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,982 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2022 |
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Axles and brakes |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
732 |
|
|
$ |
1,147 |
|
|
$ |
1,879 |
|
Emission solutions |
|
|
910 |
|
|
|
863 |
|
|
|
853 |
|
|
|
868 |
|
|
|
3,494 |
|
Engine components |
|
|
502 |
|
|
|
503 |
|
|
|
509 |
|
|
|
493 |
|
|
|
2,007 |
|
Atmus |
|
|
382 |
|
|
|
391 |
|
|
|
399 |
|
|
|
385 |
|
|
|
1,557 |
|
Automated transmissions |
|
|
134 |
|
|
|
143 |
|
|
|
159 |
|
|
|
157 |
|
|
|
593 |
|
Software and electronics |
|
|
60 |
|
|
|
50 |
|
|
|
51 |
|
|
|
45 |
|
|
|
206 |
|
Total sales |
|
$ |
1,988 |
|
|
$ |
1,950 |
|
|
$ |
2,703 |
|
|
$ |
3,095 |
|
|
$ |
9,736 |
|
Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Heavy-duty truck |
|
$ |
1,114 |
|
$ |
1,117 |
|
$ |
— |
|
$ |
— |
|
$ |
2,231 |
|||||
Medium-duty truck and bus |
|
|
903 |
|
|
|
942 |
|
|
|
— |
|
|
|
— |
|
|
|
1,845 |
|
Light-duty automotive |
|
|
439 |
|
|
|
445 |
|
|
|
— |
|
|
|
— |
|
|
|
884 |
|
Off-highway |
|
|
530 |
|
|
|
484 |
|
|
|
— |
|
|
|
— |
|
|
|
1,014 |
|
Total sales |
|
$ |
2,986 |
|
|
$ |
2,988 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,974 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2022 |
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Heavy-duty truck |
|
$ |
908 |
|
|
$ |
1,001 |
|
|
$ |
972 |
|
|
$ |
966 |
|
|
$ |
3,847 |
|
Medium-duty truck and bus |
|
|
848 |
|
|
|
875 |
|
|
|
868 |
|
|
|
869 |
|
|
|
3,460 |
|
Light-duty automotive |
|
|
498 |
|
|
|
456 |
|
|
|
466 |
|
|
|
318 |
|
|
|
1,738 |
|
Off-highway |
|
|
499 |
|
|
|
443 |
|
|
|
473 |
|
|
|
485 |
|
|
|
1,900 |
|
Total sales |
|
$ |
2,753 |
|
|
$ |
2,775 |
|
|
$ |
2,779 |
|
|
$ |
2,638 |
|
|
$ |
10,945 |
|
Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2023 |
|
|
|
|
|
|
|
|
|
|
|||||
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Heavy-duty |
|
34,700 |
|
36,400 |
|
— |
|
— |
|
71,100 |
|||||
Medium-duty |
|
78,900 |
|
|
76,000 |
|
|
— |
|
|
— |
|
|
154,900 |
|
Light-duty |
|
55,000 |
|
|
53,600 |
|
|
— |
|
|
— |
|
|
108,600 |
|
Total units |
|
168,600 |
|
|
166,000 |
|
|
— |
|
|
— |
|
|
334,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
2022 |
|
|
|
|
|
|
|
|
|
|
|||||
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Heavy-duty |
|
28,600 |
|
|
30,900 |
|
|
30,200 |
|
|
31,000 |
|
|
120,700 |
|
Medium-duty |
|
72,600 |
|
|
68,800 |
|
|
69,800 |
|
|
72,400 |
|
|
283,600 |
|
Light-duty |
|
66,500 |
|
|
60,400 |
|
|
58,300 |
|
|
42,400 |
|
|
227,600 |
|
Total units |
|
167,700 |
|
|
160,100 |
|
|
158,300 |
|
|
145,800 |
|
|
631,900 |
|
Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Parts |
|
$ |
1,057 |
|
$ |
1,019 |
|
$ |
— |
|
$ |
— |
|
$ |
2,076 |
|||||
Power generation |
|
|
492 |
|
|
|
614 |
|
|
|
— |
|
|
|
— |
|
|
|
1,106 |
|
Engines |
|
|
456 |
|
|
|
531 |
|
|
|
— |
|
|
|
— |
|
|
|
987 |
|
Service |
|
|
401 |
|
|
|
431 |
|
|
|
— |
|
|
|
— |
|
|
|
832 |
|
Total sales |
|
$ |
2,406 |
|
|
$ |
2,595 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,001 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2022 |
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Parts |
|
$ |
924 |
|
|
$ |
990 |
|
|
$ |
945 |
|
|
$ |
959 |
|
|
$ |
3,818 |
|
Power generation |
|
|
401 |
|
|
|
441 |
|
|
|
431 |
|
|
|
501 |
|
|
|
1,774 |
|
Engines |
|
|
441 |
|
|
|
429 |
|
|
|
449 |
|
|
|
457 |
|
|
|
1,776 |
|
Service |
|
|
351 |
|
|
|
393 |
|
|
|
414 |
|
|
|
403 |
|
|
|
1,561 |
|
Total sales |
|
$ |
2,117 |
|
|
$ |
2,253 |
|
|
$ |
2,239 |
|
|
$ |
2,320 |
|
|
$ |
8,929 |
|
Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification
Sales for our Power Systems segment by product line were as follows:
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Power generation |
|
$ |
770 |
|
$ |
854 |
|
$ |
— |
|
$ |
— |
|
$ |
1,624 |
|||||
Industrial |
|
|
455 |
|
|
|
468 |
|
|
|
— |
|
|
|
— |
|
|
|
923 |
|
Generator technologies |
|
|
118 |
|
|
|
135 |
|
|
|
— |
|
|
|
— |
|
|
|
253 |
|
Total sales |
|
$ |
1,343 |
|
|
$ |
1,457 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,800 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2022 |
|
|
|
|
|
|
|
|
|
|
||||||||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Power generation |
|
$ |
664 |
|
|
$ |
657 |
|
|
$ |
739 |
|
|
$ |
730 |
|
|
$ |
2,790 |
|
Industrial |
|
|
393 |
|
|
|
428 |
|
|
|
483 |
|
|
|
468 |
|
|
|
1,772 |
|
Generator technologies |
|
|
103 |
|
|
|
118 |
|
|
|
127 |
|
|
|
123 |
|
|
|
471 |
|
Total sales |
|
$ |
1,160 |
|
|
$ |
1,203 |
|
|
$ |
1,349 |
|
|
$ |
1,321 |
|
|
$ |
5,033 |
|
High-horsepower unit shipments by engine classification were as follows:
2023 |
|
|
|
|
|
|
|
|
|
|
|||||
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Power generation |
|
2,900 |
|
3,300 |
|
— |
|
— |
|
6,200 |
|||||
Industrial |
|
1,500 |
|
|
1,600 |
|
|
— |
|
|
— |
|
|
3,100 |
|
Total units |
|
4,400 |
|
|
4,900 |
|
|
— |
|
|
— |
|
|
9,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
2022 |
|
|
|
|
|
|
|
|
|
|
|||||
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Power generation |
|
2,200 |
|
|
2,400 |
|
|
2,400 |
|
|
2,700 |
|
|
9,700 |
|
Industrial |
|
1,100 |
|
|
1,200 |
|
|
1,200 |
|
|
1,400 |
|
|
4,900 |
|
Total units |
|
3,300 |
|
|
3,600 |
|
|
3,600 |
|
|
4,100 |
|
|
14,600 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230803973503/en/
Jon Mills
Director – External Communications
317-658-4540
jon.mills@cummins.com
Source: Cummins Inc.
FAQ
What were Cummins Inc.'s second quarter revenues?
What was Cummins Inc.'s net income in the second quarter?