Cummins' North American sales up in Q2 31%

Cummins (brand)recently announced its second quarter 2023 results, in which North Americasales growth31%. 

Revenues for the second quarter were $8.6 billion, an increase of 311 TP3T from the same quarter in 2022. North America due to the addition of Meritor and strong demand in most global markets.total income from salesgrowth of 311 TP3T and international revenue growth of 321 TP3T.

“Strong demand in most of our key markets and regions resulted in the Company achieving record revenues and solid profitability in the second quarter of 2023,” said Jennifer Rumsey, Chairman and Chief Executive Officer. “We are committed to delivering cycle-by-cycle improvements in our financial performance, returning cash to our shareholders and prioritizing investments to continue to build our portfolio and power the success of our customers around the world. I want to thank our Cummins employees, who continue to work tirelessly to meet customer needs and to improve our business by ensuring quality products, strengthening our customer relationships and responding to ongoingsupply chainsrestrictions to cope with strong demand levels.”

Net income attributable to Cummins for the second quarter was $720 million, or $5.05 diluted EPS, compared to $702 million, or $4.94 diluted EPS, in 2022. Results include costs associated with the Atmus separation of $23 million, or $0.13 diluted EPS. 29 million, or $0.16 per diluted share, in the second quarter of 2023 compared to $29 million in the second quarter of 2022.

The second quarter of 2022 also included $47 million, or $0.33 per diluted share, benefiting from a reserve adjustment related to the indefinite suspension of operations in Russia. The tax rate for the second quarter was 22.31 TP3T, which included $3 million, or $0.02 per diluted share, of unfavorable discrete taxes.

Second quarter EBITDA was $1.3 billion, or 15.11 TP3T of sales, compared to $1.1 billion, or 16.01 TP3T of sales, in the same period last year. EBITDA in the second quarter of 2023 includes costs associated with the Atmus separation, and EBITDA in the second quarter of 2022 includes a reserve release associated with the indefinite suspension of operations in Russia and costs associated with the aforementioned Atmus separation. EBITDA for the second quarter of 2023 includes costs associated with the Atmus separation, while EBITDA for the second quarter of 2022 includes the release of reserves associated with the indefinite suspension of operations in Russia and costs associated with the Atmus separation described above. The decrease in the second quarter EBITDA percentage was primarily due to the dilutive impact of Meritor, which currently has a lower gross margin percentage than our company average.

Based on current forecasts, Cummins maintains its full-year 2023 revenue guidance at growth of 15% to 20% due to strong demand in most markets, particularly North America.EBITDA is expected to remain at 15.0% to 15.7% of sales.

“While we believe demand remains strong through 2023 and we maintain our guidance on revenue and profitability, we will continue to closely monitor global economic indicators. If economic momentum slows, Cummins will maintain its strong position, continue to invest in future growth, bring new technologies to customers while advancing our Destination Zero strategy, and return cash to shareholders.“