Cummins Inc. posted $8.543 billion in net sales in the fourth quarter of 2023 compared to $7.770 billion in the fourth quarter of 2022, a 9.9-percent increase.
For the full year, Cummins boosted net sales 21.3 percent, from $28.074 billion in 2022 to $34.065 billion in 2023.
In the fourth quarter of 2023, sales in North America increased 8 percent and international revenues jumped 13 percent, reflecting strong demand across most of Cummins’ global markets during the period. Sales in North America increased 22 percent for the full year and international revenues increased 20 percent compared to 2022 because of the addition of Meritor and strong demand across most global markets.
Net income for the full year 2023 was $735 million, or $5.15 per diluted share, compared to $2.2 billion, or $15.12 per diluted share in 2022. Results in 2023 included costs related to an agreement to resolve U.S. regulatory claims of $2.04 billion, or $13.78 per diluted share, related to the separation of Atmus of $100 million. Full year 2022 results included costs related to the indefinite suspension of operations in Russia of $111 million.
EBITDA in 2023 was $3.0 billion, or 8.9 percent of sales compared to $3.8 billion or 13.5 percent of sales in 2022.
“High global demand for Cummins’ diverse set of innovative products drove record full year revenues and operating cash flow in 2023,” said Jennifer Rumsey, chair and CEO. “Excluding the impacts related to the agreement to resolve U.S. regulatory claims, 2023 was a record year for EBITDA, net income and EPS for Cummins. Also, EBITDA percent improved year over year in the Components, Distribution and Power Systems segments. I want to thank all of our employees for delivering high-quality products to our customers and making 2023 a successful year.”
Rumsey said she anticipated that demand will slow particularly in the North America heavy-duty truck market, partially offset by strength in other key markets, and said the company has taken actions to reduce costs.
Continued investment in 2024
“We will continue to monitor global economic indicators closely and will ensure we are prepared to adjust our business should economic momentum slow further,” added Rumsey. “Consistent with how we have managed Cummins through prior cycles, and in alignment with our Destination Zero strategy, we will continue investment in new technologies and products in 2024. This sustained investment will ensure that the company will be positioned to generate strong growth and profitability in both near and long terms.”
Highlights of 2023 included the launch of Accelera by Cummins, a new brand for its New Power business unit. Accelera provides a diverse portfolio of zero-emissions solutions for many of the world’s most vital industries empowering customers to accelerate their transition to a sustainable future.
Accelera by Cummins, Daimler Trucks & Buses, PACCAR and EVE Energy announced in September a joint venture to accelerate and localize battery cell production and the battery supply chain in the United States.