Construction equipment

Cummins sales in North America up 13%

Cummins released its third quarter results, including a 13% increase in sales in North America compared to the same period in 2020.

Third quarter revenue of $ 6.0 billion increased 17% from the same quarter in 2020. North America sales increased 13%, while international revenues increased 22% on a strong demand in all world markets except China compared to same quarter in 2020.

“Demand remained strong in the third quarter as the global economy continued to improve, leading to strong sales growth in most companies and regions outside of China, which is moderating as expected,” said President and CEO Tom Linebarger.

“Economic trends such as order activity, freight rates and used equipment prices remain robust in a number of our key end markets, indicating strong demand through 2022 and beyond. Said Linebarger. “Cummins is well positioned to take advantage of these markets. gain momentum as we continue to see orders for our products overtake our competitors. Despite this strong demand, supply chain constraints continue to impact our business as well as those of our customers, leading to increased material costs, high logistics expenses and other manufacturing inefficiencies and a revenue cap below our expectations three months ago. “

Third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) were $ 862 million (14.4% of sales), compared to $ 876 million (17.1% of sales) a year ago.

Third quarter net income attributable to Cummins was $ 534 million ($ 3.69 per diluted share) compared to $ 501 million ($ 3.36 per diluted share) in 2020. The third quarter tax rate was by 19.9%, including $ 11 million, or $ 0.08 per share, of discrete favorable items.

Outlook 2021

Based on the current forecast, Cummins is lowering its revenue forecast for the year 2021 up about 20% from last year, from the previous forecast from 20% to 24%. EBITDA is now expected to be around 15.0% versus previous forecast of 15.5-16.0% of sales due to the current supply chain challenges in our industry. The Company plans to return over 75% of operating cash flow to shareholders in 2021 in the form of dividends and share buybacks.

All out of the ordinary course of business expenses associated with the evaluation of strategic alternatives for the Filtration business have been excluded from the outlook.

Highlights of the 3rd quarter

  • Cummins has announced the commercialization of a 15-liter natural gas engine for heavy-duty vehicles. The 15-liter natural gas engine is an important part of Cummins’ strategy on its path to zero emissions. The strategy focuses on new powertrains, including diesel, natural gas, hydrogen, hybrid, battery-electric and advanced fuel-electric engines, as well as increased use of low-carbon fuels and renewable electricity. and associated infrastructure. The expanding product line will help meet Cummins’ PLANET 2050 environmental goals, which include a reduction in emissions from newly sold products by 30% by 2030 and a carbon neutral goal by 2050, aligned with the goals of the Paris Climate Agreement.
  • The company said it will launch a set of software features to integrate its powertrains with automated driving system (ADS) technologies. Cummins is a market leader in providing powertrains that deliver peak performance and fuel economy through the integration of hardware and software. With these new software features, Cummins will also extend these core capabilities into the ADS space. Cummins is positioned to be a global leader in ADS technology integration and actively tests over 100 vehicles in coordination with ADS technology companies to ensure seamless powertrain integration as ADS solutions enter commercial vehicle markets in the world.
  • Cummins received two awards, totaling nearly $ 7 million, from the U.S. Department of Energy for its continued work to improve the economic viability of fuel cell powertrain solutions for heavy-duty applications, including semi- trailers and highway buses. The program will lead to the scale and investments needed to enable faster adoption of hydrogen fuel cell technologies.

Source: Cummins

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