Cummins Posts 8-Percent Second Quarter Revenue Increase

Cummins Inc. posted second quarter 2022 revenues of $6.6 billion, an 8 percent increase compared to the second quarter of 2021. Sales in North America increased 15 percent while international revenues decreased 2 percent, driven primarily by a slowdown in China and the indefinite suspension of the company’s operations in Russia.

Net income in the second quarter was $702 million compared to $600 million in the second quarter of 2021.

“The company achieved record revenues and solid profitability in the second quarter of 2022, with demand for our products remaining strong across most of our key markets and regions apart from China,” said president and CEO Jennifer Rumsey. “Employees across our organization have worked tireless in the face of supply chain challenges and rising costs that continue to impact our industry. While navigating these challenges, we will continue to focus on enabling our customers’ success, driving cycle over cycle improvement in financial performance, investing in sustainable solutions that will protect our planet for future generations and returning excess cash to shareholders.”

EBITDA in the second quarter was $1.1 billion (16 percent of sales), compared to $974 million ($15.9 percent of sales) in the second quarter of 2021.

Based on the current forecast, Cummins is maintaining its full year 2022 guidance, expecting revenue to be up 8 percent and EBITDA of about 15.5 percent.

“High inflation and rising global interest rates have increased uncertainty about the pace of growth in the global economy,” said Rumsey. “Demand for Cummins’ products and services remains strong, and as a result, we have maintained our projection for full year revenues and profitability from three months ago.”

Acquisitions completed

In the quarter, Cummins completed the acquisition of Jacobs Vehicle Systems, adding engine braking and cylinder deactivation technologies, key components to meeting current and future emissions regulations. And this month, Cummins completed the acquisition of Meritor. Also, during the quarter Cummins announced collaborations with Daimler Truck North America and Scania to deliver fuel cell electric powertrains for heavy-duty truck applications, and with Komatsu on the development of zero-emissions haulage equipment.

Cummins’ Engine Segment reported sales of $2.8 billion, an 11-percent increase. Sales increased 15 percent in North America and 1 percent in international markets, with growth in Europe offset by a decline in China and the cessation of operations in Russia.

Cummins Distribution Segment posted $2.3 billion in sales, a 17-percent jump, with North America revenues increasing 21 percent and international sales hiking 10 percent.

Cummins Components Segment reported $2 billion in sales, a 2-percent drop. Power Systems did $1.2 billion in sales, a 5-percent increase.

Cummins is headquartered in Columbus, Ind.