Cummins Inc. posted second quarter 2021 revenues of $6.1 billion, a 59-percent increase compared to the same quarter of 2020. Sales in North America increased 74 percent, while international revenues jumped 42 percent driven by strong demand in all global markets compared to the same quarter a year ago, which was heavily impacted by the COVID-19 pandemic. Currency positively impacted sales by 3 percent primarily because of a weaker U.S. dollar.
“Strong demand across many of our key markets drove continued sales growth in the second quarter, particularly in North America, and resulted in solid profitability,” said Chairman and CEO Tom Linebarger. “The strength of the order board reflects robust underlying demand in many of our markets which is remarkable considering the challenges and uncertainty we faced during this same period last year. I cannot thank our employees and the employees of our supply base enough for their unwavering contributions during these challenging times given the significant supply chain constraints we continue to experience in our industry.”
EBITDA In the second quarter was $974 million (15.9 percent of sales) compared to $549 million (14.3 percent of sales) in the second quarter of 2020.
Net income in the second quarter was $600 million ($4.10 per diluted share) compared to $276 million ($1.86 per diluted share) a year ago.
Cummins’ sales in its engine segment hiked 75 percent year over year to $2.5 billion. Sales increased 104 percent in North America and 26 percent in international markets. In its distribution segment, sales increased 20 percent to $1.9 billion, with revenues in North America increasing 18 percent and international sales jumping 22 percent. Demand increased across the power generation and engine markets in addition to parts and service compared to last year, which was hit hard by the pandemic. Cummins’ components segment leaped 73 percent to $2 billion. Revenues in North America surged 108 percent, while international sales jumped 46 percent. Sales soared in the power systems segment 47 percent year over year to $1.1 billion. Power generation revenues increased 54 percent driven by growth in recreational vehicles and data center markets, while industrial revenue increased 36 percent because of strong demand in mining markets.
Cummun’s “New Power” segment climbed 140 percent because of greater demand in transit and school use markets as well as shipments of fuel cell systems to the rail market.
Cummins announced it is exploring strategic alternatives for its Filtration business unit, including the possibility of separating the business into a stand-alone company.
Chairman and CEO Tom Linebarger said, “Cummins Filtration is a technology leader with global presence and significant runway for continued growth. We expect that the strategic alternatives we are considering will result in enhanced value for our stakeholders, and position Cummins Filtration to take advantage of enhanced opportunities to invest in organic and inorganic growth.”