Cummins Inc. posted $6 billion in third quarter revenues, a 17-percent increase compared to the same quarter in 2020. Sales in North America increased 13 percent, while international revenues jumped 22 percent, driven by strong demand across all global markets outside of China compared to the same quarter in 2020.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter was $862 million (14.4 percent of sales) compared to $876 million (17.1 percent of sales in the third quarter of 2020. Net income attributable to Cummins in the third quarter was $534 million ($3.69 per diluted share compared to $501 million in 2020 ($3.36 per diluted share.
“Demand remained strong in the third quarter as the global economy continued to improve, driving strong sales growth across most businesses and regions outside of China, which is moderating in line with expectations,” said chairman and CEO Tom Linebarger. “Economic trends such as order activity, freight rates, and used equipment prices remained robust across a number of our key end markets which points to strong demand extending into 2022 and beyond. Cummins is well positioned to benefit as these markets gain momentum as we continue to see orders for our products outpace our competition.
“Despite this strong demand, supply chain constraints continue to impact our business as well as our customers’, resulting in rising material costs, elevated logistics expenses, and other manufacturing inefficiencies and capping revenue below our expectations three months ago.”
Cummins announced that it will bring to market a 15-liter natural gas engine for heavy-duty trucks. The 15-liter natural gas engine is an important part of Cummins strategy for its path to zero emissions. The strategy focuses on new powertrains including advanced diesel, natural gas, hydrogen engines, hybrids, battery electric, and fuel cells along with an increased use of low carbon fuels and renewable electricity and related infrastructure. The expanding product lineup will help Cummins achieve its PLANET 2050 environmental goals, including a goal of carbon neutrality by 2050, aligned with the Paris Climate Accord targets.
Cummins also announced it will launch a set of software features to integrate its powertrains with Automated Driving Systems technologies. The company is actively testing more than 100 vehicles in coordination with ADS technology companies to ensure powertrain integration as ADS solutions enter commercial vehicle markets globally.
Also, the company launched Cummins Water Works, a community-focused initiative to address the global water crisis by bringing fresh water to 20 million people who would otherwise not have access to it. The program will partner with leading water experts, and the Water Resilience Coalition to invest in sustainable large-scale projects in water-stressed regions. And Cummins administered more than 30,000 COVID vaccine doses in India.
The engine segment posted sales of $2.6 billion, a 22 percent year-over-year hike, with a 23-percent increase in North America. Cummins’ Distribution segment increased 14 percent, while its Components segment went up 16 percent, its Power Systems segment 19 percent, and its New Power segment leapt 28 percent.
Cummins Inc. is headquartered in Columbus, Ind.