STOCK TITAN

Cummins Reports Strong Second Quarter 2023 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Cummins Inc. reports record second quarter revenues of $8.6 billion, a 31% increase from the same quarter in 2022. Net income was $720 million, or $5.05 per diluted share. The company maintains its full year 2023 guidance, expecting revenue to be up 15-20% and EBITDA of 15.0-15.7%.
Positive
  • 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.
Negative
  • None.
  • Record second quarter revenues of $8.6 billion; GAAP1 Net Income of $720 million
  • EBITDA in the second quarter was 15.1 percent of sales; Diluted EPS of $5.05
  • Second quarter results include $23 million, or $0.13 per diluted share, of costs related to the separation of Atmus Filtration Technologies Inc.
  • 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.

COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2023.

Second quarter revenues of $8.6 billion increased 31 percent from the same quarter in 2022. Sales in North America increased 31 percent and international revenues increased 32 percent due to the addition of Meritor and strong demand across most global markets.

“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 $720 million, or $5.05 per diluted share compared to $702 million, or $4.94 per diluted share in 2022. Results included costs associated with the separation of Atmus of $23 million, or $0.13 per diluted share, in the second quarter of 2023, and $29 million, or $0.16 per diluted share, in the second quarter of 2022. The second quarter of 2022 also included $47 million, or $0.33 per diluted share, of benefit from adjusting the reserves related to the indefinite suspension of our operations in Russia. The tax rate in the second quarter was 22.3 percent including $3 million, or $0.02 per diluted share, of unfavorable discrete tax items.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.3 billion, or 15.1 percent of sales, compared to $1.1 billion, or 16.0 percent of sales, a year ago. EBITDA for the second quarter of 2023 included the costs related to the separation of Atmus and the second quarter 2022 EBITDA included the reserve release related to the indefinite suspension of operations in Russia and costs related to the separation of Atmus as noted above. EBITDA percentage decreased in the second quarter principally due to the dilutive impact of Meritor, which currently has a lower gross margin percentage than our company average.

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 North America. EBITDA is still expected to be in the range of 15.0 to 15.7 percent of sales.

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 $4.7 billion to $4.9 billion and EBITDA to be in the range of 10.3 to 11.0 percent of sales, consistent with prior guidance.

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 $299 million of net proceeds and Atmus added $650 million of debt. Cummins realizes the benefits of the IPO proceeds and the debt issuance, as Atmus will hold the debt at full separation.
  • 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) in New 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’ first U.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 in the United States. Accelera is initially dedicating 89,000 sq. ft. of the existing Cummins power generation facility in Fridley to electrolyzer production.
  • In the second quarter, Accelera reached a milestone of backlog electrolyzer orders totaling over $500 million. The 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 $1.57 to $1.68 per share. The company has increased the quarterly dividend to shareholders for 14 consecutive years.

1 Generally Accepted Accounting Principles in the U.S.

Second quarter 2023 detail (all comparisons to same period in 2022):

Components Segment

  • Sales - $3.4 billion, up 76 percent
  • Segment EBITDA - $486 million, or 14.2 percent of sales, which includes $18 million of costs related to the separation of Atmus compared to $352 million, or 18.1 percent of sales, which includes $2 million of benefits from adjusting the reserves related to the indefinite suspension of operations in 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 - $3.0 billion, up 8 percent
  • Segment EBITDA - $425 million, or 14.2 percent of sales, compared to $421 million or 15.2 percent of sales, which included $1 million of costs from the indefinite suspension of operations in 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 - $2.6 billion, up 15 percent
  • Segment EBITDA - $299 million, or 11.5 percent of sales, compared to $297 million, or 13.2 percent of sales, a year ago when results included $45 million of benefits from adjusting the reserves related to the indefinite suspension of operations in 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 - $1.5 billion, up 21 percent
  • Segment EBITDA - $201 million, or 13.8 percent of sales, compared to $128 million, or 10.6 percent of sales, which included $1 million of benefit from adjusting the reserves related to the indefinite suspension of operations in Russia
  • Second quarter results also included $18 million of costs related to severance costs related to transformation efforts within the segment.
  • 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 - $85 million, up 102 percent
  • 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 Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 73,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $2.2 billion on sales of $28.1 billion in 2022. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com/always-on.

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 Russia and Ukraine and the global response (including government bans or restrictions on doing business in Russia); aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; failure to complete, adverse results from or failure to realize the expected benefits of the separation of our filtration business; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas (GHG) regulations or other legislation designed to address climate change; exposure to potential security breaches or other disruptions to our information technology environment and data security; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet environmental, social and governance (ESG) expectations or standards, or achieve our ESG goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2022 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

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 the United States of America.

 

 

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 the United States of America.

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (a)

 

 

 

 

 

In millions, except par value

 

June 30,
2023

 

December 31,
2022

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, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued

 

$

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 the United States of America.

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 the United States of America.

 

 

 

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 the United States of America.

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

Components

 

Engine

 

Distribution

 

Power Systems

 

Accelera

 

Total Segments

 

Intersegment
Eliminations (1)

 

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 $5 million and $24 million of costs associated with the IPO and separation of Atmus Filtration Technologies Inc. (Atmus) in 2023 and 2022, respectively.

(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests.

(3) Includes $18 million of costs associated with the IPO and separation of Atmus. See "DIVESTITURE AND ACQUISITIONS," note for additional information.

(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
Eliminations (1)

 

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 $11 million and $41 million of costs associated with the IPO and separation of Atmus in 2023 and 2022, respectively.

(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests.

(3) Includes $30 million of costs associated with the IPO and separation of Atmus. See "DIVESTITURE AND ACQUISITIONS," note for additional information.

(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 $2 million and $2 million for the six months ended June 30, 2023 and 2022, respectively. A portion of depreciation expense is included in research, development and engineering expenses.

(5) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the indefinite suspension of our Russian operations.

(6) Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above.

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 $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the indefinite suspension of our Russian operations.

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 $350 million of commercial paper with certain lenders. On May 26, 2023, Atmus shares began trading on the New York Stock Exchange under the symbol "ATMU." The IPO was completed on May 30, 2023, whereby Cummins exchanged 19.5 percent (approximately 16 million shares) of its ownership in Atmus, at $19.50 per share, to retire $299 million of the commercial paper as proceeds from the offering through a non-cash transaction.

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 $650 million to Cummins, which consisted primarily of the net proceeds from a term loan facility and revolver executed by Atmus during May 2023.

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 $335 million for their 19 percent ownership, including the settlement of shareholder loans of $48 million. As part of the share purchase agreement, Hydrogenics entered into three non-interest-bearing promissory notes with $175 million paid on July 31, 2023, and the remaining $160 million due in three installments through 2025.

Teksid Hierro de Mexico, S.A. de C.V.

On April 3, 2023, we acquired Teksid Hierro de Mexico, S.A. de C.V. (Teksid MX) business for approximately $150 million, subject to working capital and other customary adjustments. Teksid MX operates a cast iron foundry located in Monclova, Mexico, which primarily forges blocks and heads used in our and other manufacturers’ engines. Teksid, Inc. facilitates the commercialization of Teksid MX products in North America.

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 $62 million offset by finalization of deferred taxes and tax reserves, with a net increase to goodwill of $26 million. There was no impact to the Condensed Consolidated Statements of Net Income for any of the changes.

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 $3 million, or $0.02 per share.

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 $36 million, or $0.25 per share, primarily due to $36 million of favorable changes in tax reserves, $10 million of favorable changes associated with the indefinite suspension in our Russian operations and $8 million of net favorable other discrete tax items, partially offset by $18 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus.

Our effective tax rate for the six months ended June 30, 2022, was 21.1 percent and contained favorable discrete items of $5 million, or $0.04 per share, primarily due to $27 million of favorable changes in tax reserves and $4 million of net favorable other discrete tax items, partially offset by $18 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus and $8 million of unfavorable changes associated with the indefinite suspension in our Russian operations.

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 the United States (GAAP) and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in the Condensed Consolidated Statements of Net Income. Below is a reconciliation of “Net income attributable to Cummins Inc.” to EBITDA for each of the applicable periods:

 

 

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

 

 

Jon Mills

Director – External Communications

317-658-4540

jon.mills@cummins.com

Source: Cummins Inc.

FAQ

What were Cummins Inc.'s second quarter revenues?

Cummins Inc.'s second quarter revenues were $8.6 billion, a 31% increase from the same quarter in 2022.

What was Cummins Inc.'s net income in the second quarter?

Cummins Inc.'s net income in the second quarter was $720 million, or $5.05 per diluted share.

What is Cummins Inc.'s guidance for full year 2023?

Cummins Inc. 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.

Cummins Inc.

NYSE:CMI

CMI Rankings

CMI Latest News

CMI Stock Data

48.65B
137.05M
0.4%
87.39%
1.58%
Specialty Industrial Machinery
Engines & Turbines
Link
United States of America
COLUMBUS