Cummins Reports Record First Quarter 2023 Results

  • Record first quarter revenues of $8.5 billion; Record GAAP1 Net Income of $790 million
  • EBITDA in the first quarter was 16.1 percent of sales; Record Diluted EPS of $5.55
  • First quarter results include $18 million, or $0.10 per diluted share, of costs related to the separation of the Filtration business.
  • The company is raising its full year 2023 revenue guidance to be up 15 to 20 percent; an increase from previous guidance of up 12 to 17 percent.
  • EBITDA is now expected to be in the range of 15.0 to 15.7 percent; an increase from previous guidance of 14.5 to 15.2 percent.

COLUMBUS, IND.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) today reported results for the first quarter of 2023.

First quarter revenues of $8.5 billion increased 32 percent from the same quarter in 2022. Sales in North America increased 39 percent and international revenues increased 24 percent due to the addition of Meritor and strong demand across all key global markets.

“The company achieved record revenues, EBITDA and EPS in the first quarter of 2023, with demand for our products remaining strong across most of our key markets and regions,” said Jennifer Rumsey, President and CEO. “We are delivering cycle-over-cycle improvement in financial performance despite persistent supply chain constraints, and we continue to invest in sustainable solutions that will protect our planet for future generations and support the success of our customers.”

Net income attributable to Cummins in the first quarter was $790 million, or $5.55 per diluted share compared to $418 million, or $2.92 per diluted share, in 2022, which included $158 million, or $1.03 per diluted share, of costs related to the indefinite suspension of operations in Russia. Results included costs associated with the separation of the Filtration business of $18 million, or $0.10 per diluted share, in the first quarter of 2023, and $17 million, or $0.09 per diluted share, in the first quarter of 2022. The tax rate in the first quarter was 21.7 percent including $3 million, or $0.02 per diluted share, of favorable discrete tax items.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were $1.4 billion, or 16.1 percent of sales, compared to $755 million, or 11.8 percent of sales, a year ago. EBITDA for the first quarter of 2023 included the costs related to the separation of the Filtration business and the first quarter 2022 EBITDA included the costs related to the indefinite suspension of operations in Russia and costs related to the separation of the Filtration business as noted above.

2023 Outlook:

Based on its current forecast, Cummins is raising its full year 2023 revenue guidance to be up 15 to 20 percent, an increase from our prior projections of up 12 to 17 percent due to stronger demand across most markets. EBITDA is expected to be in the range of 15.0 to 15.7 percent, an increase from the prior range of 14.5 and 15.2 percent of sales.

The outlook above includes the projected results of the Meritor business for 2023, but excludes any costs or benefits associated with the planned separation of the Filtration business. Within the Components Segment, Cummins expects revenues of the Meritor business for 2023 to be between $4.7 billion to $4.9 billion, an increase from $4.5 billion to $4.7 billion previously, and EBITDA to be in the range of 10.3 to 11.0 percent of sales, consistent with prior guidance.

The company plans to continue to generate strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50 percent of operating cash flow back to shareholders. In the near term, we will focus on reinvesting for profitable growth, dividends and reducing debt.

“We have raised our guidance on revenue and profitability for 2023 due to continued demand for Cummins’ products and services. We will continue monitoring global economic indicators closely to ensure we are prepared should economic momentum slow,” said Rumsey. “Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”

First Quarter 2023 Highlights:

  • In March, Cummins announced 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 announced that it will supply a 90-megawatt (MW) proton exchange membrane (PEM) electrolyzer system for Varennes Carbon Recycling’s (VCR) plant in Quebec, Canada – a key step in advancing North America’s green hydrogen economy.
  • Progress continues to be made on the planned separation of the Filtration business. In February, the company announced that its Filtration business, Atmus Filtration Technologies, has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission for a proposed underwritten initial public offering of newly issued common stock.
  • Cummins received several prestigious honors during the quarter including being named to Ethisphere’s World’s Most Ethical Companies list for the 16th consecutive year, included in Sustainalytics’ 2023 Top-Rated Companies list, recognizing the best performing sustainability/ESG companies, and ranked first in the Automotive and Components industry in Newsweek’s annual ranking of America’s Most Responsible Companies. Also, Cummins was one of 66 companies honored as America’s Top Corporations for Women’s Business Enterprises in 2023 for the way it works with women-owned businesses and was recognized as a 2023 Military Friendly Employer, receiving the bronze designation for creating sustainable and meaningful benefits for the military community.

1 Generally Accepted Accounting Principles in the U.S.

First quarter 2023 detail (all comparisons to same period in 2022):

Components Segment

  • Sales - $3.6 billion, up 79 percent
  • Segment EBITDA - $507 million, or 14.3 percent of sales, which includes $12 million of costs related to the separation of the Filtration business compared to $320 million, or 16.1 percent of sales, which includes $6 million of costs from the indefinite suspension of operations in Russia
  • Revenues in North America increased by 87 percent and international sales increased by 69 percent due to the addition of Meritor and increased global demand.

Engine Segment

  • Sales - $3.0 billion, up 8 percent
  • Segment EBITDA - $457 million, or 15.3 percent of sales, compared to $390 million or 14.2 percent of sales, which includes $32 million of costs from the indefinite suspension of operations in Russia
  • On-highway revenues increased 9 percent driven by strong demand in the North American truck market, pricing actions and strong aftermarket demand.
  • Sales increased 9 percent in North America and grew 8 percent in international markets due to an increase in China and India demand.

Distribution Segment

  • Sales - $2.4 billion, up 14 percent
  • Segment EBITDA - $335 million, or 13.9 percent of sales, compared to $110 million, or 5.2 percent of sales, which includes $100 million of costs from the indefinite suspension of operations in Russia
  • Revenues in North America increased 24 percent and international sales decreased by 5 percent.
  • Higher revenues were driven by increased demand for parts, service, and whole goods and pricing actions.

Power Systems Segment

  • Sales - $1.3 billion, up 16 percent
  • Segment EBITDA - $219 million, or 16.3 percent of sales, compared to $90 million, or 7.8 percent of sales, which includes $20 million of costs from the indefinite suspension of operations in Russia
  • Power generation revenues increased 16 percent driven by increased global demand and pricing actions. Industrial revenues increased 16 percent due to strong demand for aftermarket products and increased demand in oil and gas markets.

Accelera Segment

  • Sales - $85 million, up 174 percent
  • Segment EBITDA loss - $94 million
  • Revenues increased due to higher demand for battery electric systems in the North American school bus market and the additions of the electric powertrain portion of the Meritor business and Siemens Commercial Vehicle business.
  • Costs associated with the development of electric powertrains, fuel cells and electrolyzers, as well as products to support battery electric vehicles are contributing to EBITDA losses.

About Cummins Inc.

Cummins Inc., a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, electric powertrains, hydrogen production and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 73,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $2.2 billion on sales of $28.1 billion in 2022. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com/always-on.

Forward-looking disclosure statement

Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse results of our internal review into our emissions certification process and compliance with emission standards; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; evolving environmental and climate change legislation and regulatory initiatives; future bans or limitations on the use of diesel-powered products; failure to successfully integrate and / or failure to fully realize all of the anticipated benefits of the acquisition of Meritor, Inc.; raw material, transportation and labor price fluctuations and supply shortages; any adverse effects of the conflict between Russia and Ukraine and the global response (including government bans or restrictions on doing business in Russia); aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; failure to complete, adverse results from or failure to realize the expected benefits of the separation of our filtration business; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas (GHG) regulations or other legislation designed to address climate change; exposure to potential security breaches or other disruptions to our information technology environment and data security; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet environmental, social and governance (ESG) expectations or standards, or achieve our ESG goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2022 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.

Presentation of Non-GAAP Financial Information

EBITDA is a non-GAAP measure used in this release and is defined and reconciled to what management believes to be the most comparable GAAP measure in a schedule attached to this release, except for forward-looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the non-cash items that are excluded from the non-GAAP outlook measure. Cummins presents this information as it believes it is useful to understanding the Company's operating performance, and because EBITDA is a measure used internally to assess the performance of the operating units.

Webcast information

Cummins management will host a teleconference to discuss these results today at 10 a.m. EST. This teleconference will be webcast and available on the Investor Relations section of the Cummins website at www.cummins.com. Participants wishing to view the visuals available with the audio are encouraged to sign-in a few minutes prior to the start of the teleconference.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited) (a)

 

 

 

Three months ended

 

 

March 31,

In millions, except per share amounts

 

 

2023

 

 

 

2022

 

NET SALES

 

$

8,453

 

$

6,385

 

Cost of sales

 

 

6,424

 

 

 

4,853

 

GROSS MARGIN

 

 

2,029

 

 

 

1,532

 

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

 

753

 

 

 

615

 

Research, development and engineering expenses

 

 

350

 

 

 

298

 

Equity, royalty and interest income from investees

 

 

119

 

 

 

96

 

Other operating expense, net

 

 

19

 

 

 

111

 

OPERATING INCOME

 

 

1,026

 

 

 

604

 

Interest expense

 

 

87

 

 

 

17

 

Other income (expense), net

 

 

90

 

 

 

(9

)

INCOME BEFORE INCOME TAXES

 

 

1,029

 

 

 

578

 

Income tax expense

 

 

223

 

 

 

155

 

CONSOLIDATED NET INCOME

 

 

806

 

 

 

423

 

Less: Net income attributable to noncontrolling interests

 

 

16

 

 

 

5

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

790

 

 

$

418

 

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

5.58

 

 

$

2.94

 

Diluted

 

$

5.55

 

 

$

2.92

 

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

 

141.5

 

 

 

142.2

 

Diluted

 

 

142.4

 

 

 

143.1

 

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (a)

 

In millions, except par value

 

March 31,
2023

 

December 31,
2022

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

1,980

 

 

$

2,101

 

Marketable securities

 

 

459

 

 

 

472

 

Total cash, cash equivalents and marketable securities

 

 

2,439

 

 

 

2,573

 

Accounts and notes receivable, net

 

 

5,834

 

 

 

5,202

 

Inventories

 

 

5,878

 

 

 

5,603

 

Prepaid expenses and other current assets

 

 

1,217

 

 

 

1,073

 

Total current assets

 

 

15,368

 

 

 

14,451

 

Long-term assets

 

 

 

 

Property, plant and equipment, net

 

 

5,590

 

 

 

5,521

 

Investments and advances related to equity method investees

 

 

1,860

 

 

 

1,759

 

Goodwill

 

 

2,365

 

 

 

2,343

 

Other intangible assets, net

 

 

2,640

 

 

 

2,687

 

Pension assets

 

 

1,496

 

 

 

1,398

 

Other assets

 

 

2,114

 

 

 

2,140

 

Total assets

 

$

31,433

 

 

$

30,299

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable (principally trade)

 

$

4,636

 

 

$

4,252

 

Loans payable

 

 

229

 

 

 

210

 

Commercial paper

 

 

2,545

 

 

 

2,574

 

Current maturities of long-term debt

 

 

569

 

 

 

573

 

Accrued compensation, benefits and retirement costs

 

 

510

 

 

 

617

 

Current portion of accrued product warranty

 

 

746

 

 

 

726

 

Current portion of deferred revenue

 

 

1,040

 

 

 

1,004

 

Other accrued expenses

 

 

1,648

 

 

 

1,465

 

Total current liabilities

 

 

11,923

 

 

 

11,421

 

Long-term liabilities

 

 

 

 

Long-term debt

 

 

4,409

 

 

 

4,498

 

Deferred revenue

 

 

937

 

 

 

844

 

Other liabilities

 

 

3,283

 

 

 

3,311

 

Total liabilities

 

$

20,552

 

 

$

20,074

 

 

 

 

 

 

Redeemable noncontrolling interests

 

$

261

 

 

$

258

 

 

 

 

 

 

EQUITY

 

 

 

 

Cummins Inc. shareholders’ equity

 

 

 

 

Common stock, $2.50 par value, 500 shares authorized, 222.5 and 222.5 shares issued

 

$

2,230

 

 

$

2,243

 

Retained earnings

 

 

18,605

 

 

 

18,037

 

Treasury stock, at cost, 80.9 and 81.2 shares

 

 

(9,389

)

 

 

(9,415

)

Accumulated other comprehensive loss

 

 

(1,823

)

 

 

(1,890

)

Total Cummins Inc. shareholders’ equity

 

 

9,623

 

 

 

8,975

 

Noncontrolling interests

 

 

997

 

 

 

992

 

Total equity

 

$

10,620

 

 

$

9,967

 

Total liabilities, redeemable noncontrolling interests and equity

 

$

31,433

 

 

$

30,299

 

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

 

CUMMINS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (a)

 

 

 

Three months ended

 

 

March 31,

In millions

 

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Consolidated net income

 

$

806

 

 

$

423

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities

 

 

 

 

Depreciation and amortization

 

 

246

 

 

 

161

 

Deferred income taxes

 

 

(38

)

 

 

(66

)

Equity in income of investees, net of dividends

 

 

(67

)

 

 

(76

)

Pension and OPEB expense

 

 

1

 

 

 

9

 

Pension contributions and OPEB payments

 

 

(92

)

 

 

(43

)

Russian suspension costs

 

 

 

 

 

158

 

(Gain) loss on corporate owned life insurance

 

 

(19

)

 

 

37

 

Foreign currency remeasurement and transaction exposure

 

 

(11

)

 

 

(7

)

Changes in current assets and liabilities, net of acquisitions

 

 

 

 

Accounts and notes receivable

 

 

(621

)

 

 

(417

)

Inventories

 

 

(263

)

 

 

(289

)

Other current assets

 

 

(142

)

 

 

(57

)

Accounts payable

 

 

381

 

 

 

484

 

Accrued expenses

 

 

151

 

 

 

(251

)

Changes in other liabilities

 

 

64

 

 

 

70

 

Other, net

 

 

99

 

 

 

28

 

Net cash provided by operating activities

 

 

495

 

 

 

164

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

 

(193

)

 

 

(104

)

Acquisition of a business, net of cash acquired

 

 

 

 

 

83

 

Investments in marketable securities—acquisitions

 

 

(326

)

 

 

(197

)

Investments in marketable securities—liquidations

 

 

345

 

 

 

254

 

Other, net

 

 

(54

)

 

 

(46

)

Net cash used in investing activities

 

 

(228

)

 

 

(10

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from borrowings

 

 

43

 

 

 

14

 

Net payments of commercial paper

 

 

(29

)

 

 

(2

)

Payments on borrowings and finance lease obligations

 

 

(142

)

 

 

(24

)

Dividend payments on common stock

 

 

(222

)

 

 

(207

)

Repurchases of common stock

 

 

 

 

 

(311

)

Other, net

 

 

(13

)

 

 

33

 

Net cash used in financing activities

 

 

(363

)

 

 

(497

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 

(25

)

 

 

27

 

Net decrease in cash and cash equivalents

 

 

(121

)

 

 

(316

)

Cash and cash equivalents at beginning of year

 

 

2,101

 

 

 

2,592

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

1,980

 

 

$

2,276

 

 

 

 

 

 

(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in the United States of America.

CUMMINS INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)

REORGANIZATION WITHIN CERTAIN SEGMENTS, REBRANDING A SEGMENT AND TRANSFER OF A JOINT VENTURE BETWEEN SEGMENTS

Beginning in the first quarter of 2023, we realigned certain businesses and regions within our reportable segments to be consistent with how our segment managers monitor the performance of our segments. We reorganized the businesses within our Components segment to carve out the electronics business into the newly formed software and electronics business and combined the turbo technologies and fuel systems businesses into the newly formed engine components business. Our Components segment now consists of the following businesses: axles and brakes, emission solutions, engine components, filtration, automated transmissions and software and electronics. As a result of the indefinite suspension of operations in Russia, we reorganized the regional management structure of our Distribution segment and moved all Commonwealth of Independent States (CIS) sales into the Europe and Africa and Middle East regions. The Russian portion of prior period CIS sales moved to the Europe region. In March 2023, we rebranded our New Power segment as "Accelera" to better represent our commitment to zero-emission technologies. In addition, we moved our NPROXX joint venture from the Accelera segment to the Engine segment, which adjusted both the equity, royalty and interest income from investees and segment EBITDA line items for the current and prior year. We started to report results for the changes within our operating segments effective January 1, 2023, and reflected these changes in the historical periods presented. These changes had no impact on our consolidated results. Descriptions of the new Components' businesses and adjusted prior period balances for all segments are shown below:

Components Segment

  • Engine components - We design, manufacture and market turbocharger, valvetrain and fuel system technologies for light-duty, mid-range, heavy-duty and high-horsepower markets across North America, Europe, China and India.
  • Software and electronics - We develop, supply and remanufacture control units, specialty sensors, power electronics, actuators and software for on-highway, off-highway and power generation applications. We primarily serve markets in the Americas, China, India and Europe.

Adjusted balances for the Components' businesses are shown in the "SEGMENT SALES DATA" section below under "Components Segment Sales by Business."

External sales in 2022 and 2021 for our Components segment by business, as adjusted, were as follows:

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Axles and brakes

 

$

 

$

 

$

732

 

$

1,147

 

$

1,879

Emission solutions

 

 

808

 

 

 

767

 

 

 

748

 

 

 

763

 

 

 

3,086

 

Engine components

 

 

240

 

 

 

223

 

 

 

239

 

 

 

244

 

 

 

946

 

Filtration

 

 

308

 

 

 

319

 

 

 

322

 

 

 

310

 

 

 

1,259

 

Automated transmissions

 

 

134

 

 

 

143

 

 

 

159

 

 

 

157

 

 

 

593

 

Software and electronics

 

 

27

 

 

 

25

 

 

 

20

 

 

 

12

 

 

 

84

 

Total sales

 

$

1,517

 

 

$

1,477

 

 

$

2,220

 

 

$

2,633

 

 

$

7,847

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

In millions

 

YTD

 

 

 

 

 

 

 

 

Emission solutions

 

$

3,142

 

 

 

 

 

 

 

 

 

Engine components

 

 

1,019

 

 

 

 

 

 

 

 

 

Filtration

 

 

1,171

 

 

 

 

 

 

 

 

 

Automated transmissions

 

 

481

 

 

 

 

 

 

 

 

 

Software and electronics

 

 

119

 

 

 

 

 

 

 

 

 

Total sales

 

$

5,932

 

 

 

 

 

 

 

 

 

Distribution Segment

Total segment sales in 2022 and 2021 for our Distribution segment by region, as adjusted, were as follows:

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

North America

 

$

1,367

 

$

1,494

 

$

1,512

 

$

1,575

 

$

5,948

Asia Pacific

 

 

246

 

 

 

242

 

 

 

260

 

 

 

268

 

 

 

1,016

 

Europe

 

 

281

 

 

 

248

 

 

 

182

 

 

 

218

 

 

 

929

 

China

 

 

83

 

 

 

99

 

 

 

92

 

 

 

81

 

 

 

355

 

Africa and Middle East

 

 

50

 

 

 

61

 

 

 

79

 

 

 

61

 

 

 

251

 

Latin America

 

 

41

 

 

 

56

 

 

 

58

 

 

 

55

 

 

 

210

 

India

 

 

49

 

 

 

53

 

 

 

56

 

 

 

62

 

 

 

220

 

Total sales

 

$

2,117

 

 

$

2,253

 

 

$

2,239

 

 

$

2,320

 

 

$

8,929

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

In millions

 

YTD

 

 

 

 

 

 

 

 

North America

 

$

4,912

 

 

 

 

 

 

 

 

 

Asia Pacific

 

 

906

 

 

 

 

 

 

 

 

 

Europe

 

 

966

 

 

 

 

 

 

 

 

 

China

 

 

330

 

 

 

 

 

 

 

 

 

Africa and Middle East

 

 

278

 

 

 

 

 

 

 

 

 

Latin America

 

 

182

 

 

 

 

 

 

 

 

 

India

 

 

198

 

 

 

 

 

 

 

 

 

Total sales

 

$

7,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales in 2022 and 2021 for our Distribution segment by region, as adjusted, were as follows:

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

North America

 

$

1,371

 

$

1,491

 

$

1,512

 

$

1,574

 

$

5,948

Asia Pacific

 

 

244

 

 

 

242

 

 

 

258

 

 

 

267

 

 

 

1,011

 

Europe

 

 

275

 

 

 

246

 

 

 

181

 

 

 

212

 

 

 

914

 

China

 

 

82

 

 

 

99

 

 

 

89

 

 

 

81

 

 

 

351

 

Africa and Middle East

 

 

50

 

 

 

61

 

 

 

79

 

 

 

60

 

 

 

250

 

Latin America

 

 

41

 

 

 

56

 

 

 

58

 

 

 

55

 

 

 

210

 

India

 

 

48

 

 

 

52

 

 

 

55

 

 

 

62

 

 

 

217

 

Total sales

 

$

2,111

 

 

$

2,247

 

 

$

2,232

 

 

$

2,311

 

 

$

8,901

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

In millions

 

YTD

 

 

 

 

 

 

 

 

North America

 

$

4,902

 

 

 

 

 

 

 

 

 

Asia Pacific

 

 

901

 

 

 

 

 

 

 

 

 

Europe

 

 

962

 

 

 

 

 

 

 

 

 

China

 

 

323

 

 

 

 

 

 

 

 

 

Africa and Middle East

 

 

278

 

 

 

 

 

 

 

 

 

Latin America

 

 

182

 

 

 

 

 

 

 

 

 

India

 

 

194

 

 

 

 

 

 

 

 

 

Total sales

 

$

7,742

 

 

 

 

 

 

 

 

 

Accelera Segment NPROXX joint venture move to Engine Segment

The move of our NPROXX joint venture from our Accelera segment to Engine segment resulted in adjustments to prior period balances as follows:

 

 

2022

 

2021

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Total

Engine

 

 

 

 

 

 

 

 

 

 

 

 

Equity, royalty and interest income from investees, as disclosed

 

$

44

 

 

$

59

 

 

$

28

 

 

$

35

 

 

$

166

 

 

$

340

 

NPROXX loss adjustment

 

 

(2

)

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(6

)

 

 

(5

)

Equity, royalty and interest income from investees, as adjusted

 

$

42

 

 

$

58

 

 

$

27

 

 

$

33

 

 

$

160

 

 

$

335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA, as disclosed

 

$

392

 

 

$

422

 

 

$

363

 

 

$

364

 

 

$

1,541

 

 

$

1,411

 

NPROXX loss adjustment

 

 

(2

)

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(6

)

 

 

(5

)

Segment EBITDA, as adjusted

 

$

390

 

 

$

421

 

 

$

362

 

 

$

362

 

 

$

1,535

 

 

$

1,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments and advances to equity investees, as disclosed

 

 

 

 

 

 

 

 

 

$

590

 

 

$

742

 

NPROXX investment adjustment

 

 

 

 

 

 

 

 

 

 

27

 

 

 

29

 

Investments and advances to equity investees, as adjusted

 

 

 

 

 

 

 

 

 

$

617

 

 

$

771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accelera

 

 

 

 

 

 

 

 

 

 

 

 

Equity, royalty and interest (loss) income from investees, as disclosed

 

$

(3

)

 

$

(4

)

 

$

(5

)

 

$

4

 

 

$

(8

)

 

$

(3

)

NPROXX loss adjustment

 

 

2

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

6

 

 

 

5

 

Equity, royalty and interest (loss) income from investees, as adjusted

 

$

(1

)

 

$

(3

)

 

$

(4

)

 

$

6

 

 

$

(2

)

 

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA, as disclosed

 

$

(67

)

 

$

(80

)

 

$

(96

)

 

$

(97

)

 

$

(340

)

 

$

(223

)

NPROXX loss adjustment

 

 

2

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

6

 

 

 

5

 

Segment EBITDA, as adjusted

 

$

(65

)

 

$

(79

)

 

$

(95

)

 

$

(95

)

 

$

(334

)

 

$

(218

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments and advances to equity investees, as disclosed

 

 

 

 

 

 

 

 

 

$

60

 

 

$

49

 

NPROXX investment adjustment

 

 

 

 

 

 

 

 

 

 

(27

)

 

 

(29

)

Investments and advances to equity investees, as adjusted

 

 

 

 

 

 

 

 

 

$

33

 

 

$

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summarized financial information regarding our reportable operating segments for the three months ended, including adjusted prior year balances for the changes noted above, is shown in the table below:

In millions

 

Components

 

Engine

 

Distribution

 

Power Systems

 

Accelera

 

Total Segments

 

Intersegment Eliminations (1)

 

Total

Three months ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

3,043

 

 

$

2,252

 

 

$

2,399

 

 

$

679

 

 

$

80

 

 

$

8,453

 

 

$

 

 

$

8,453

 

Intersegment sales

 

 

514

 

 

 

734

 

 

 

7

 

 

 

664

 

 

 

5

 

 

 

1,924

 

 

 

(1,924

)

 

 

 

Total sales

 

 

3,557

 

 

 

2,986

 

 

 

2,406

 

 

 

1,343

 

 

 

85

 

 

 

10,377

 

 

 

(1,924

)

 

 

8,453

 

Research, development and engineering expenses

 

 

91

 

 

 

134

 

 

 

14

 

 

 

63

 

 

 

48

 

 

 

350

 

 

 

 

 

 

350

 

Equity, royalty and interest income (loss) from investees

 

 

21

 

 

 

65

 

 

 

24

 

 

 

13

 

 

 

(4

)

 

 

119

 

 

 

 

 

 

119

 

Interest income

 

 

6

 

 

 

3

 

 

 

7

 

 

 

2

 

 

 

 

 

 

18

 

 

 

 

 

 

18

 

EBITDA (2)

 

 

507

 

(3)

 

457

 

 

 

335

 

 

 

219

 

 

 

(94

)

 

 

1,424

 

 

 

(63

)

 

 

1,361

 

Depreciation and amortization (4)

 

 

123

 

 

 

51

 

 

 

28

 

 

 

29

 

 

 

14

 

 

 

245

 

 

 

 

 

 

245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

14.3

%

 

 

15.3

%

 

 

13.9

%

 

 

16.3

%

 

 

NM

 

 

 

13.7

%

 

 

 

 

16.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

1,517

 

 

$

2,049

 

 

$

2,111

 

 

$

683

 

 

$

25

 

 

$

6,385

 

 

$

 

 

$

6,385

 

Intersegment sales

 

 

471

 

 

 

704

 

 

 

6

 

 

 

477

 

 

 

6

 

 

 

1,664

 

 

 

(1,664

)

 

 

 

Total sales

 

 

1,988

 

 

 

2,753

 

 

 

2,117

 

 

 

1,160

 

 

 

31

 

 

 

8,049

 

 

 

(1,664

)

 

 

6,385

 

Research, development and engineering expenses

 

 

76

 

 

 

109

 

 

 

13

 

 

 

64

 

 

 

36

 

 

 

298

 

 

 

 

 

 

298

 

Equity, royalty and interest income (loss) from investees

 

 

28

 

 

 

42

 

(5)

 

16

 

 

 

11

 

 

 

(1

)

 

 

96

 

 

 

 

 

 

96

 

Interest income

 

 

1

 

 

 

4

 

 

 

2

 

 

 

1

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Russian suspension costs

 

 

6

 

 

 

32

 

(6)

 

100

 

 

 

20

 

 

 

 

 

 

158

 

 

 

 

 

 

158

 

EBITDA (2)

 

 

320

 

 

 

390

 

 

 

110

 

 

 

90

 

 

 

(65

)

 

 

845

 

 

 

(90

)

 

 

755

 

Depreciation and amortization (4)

 

 

43

 

 

 

51

 

 

 

28

 

 

 

31

 

 

 

7

 

 

 

160

 

 

 

 

 

 

160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

16.1

%

 

 

14.2

%

 

 

5.2

%

 

 

7.8

%

 

 

NM

 

 

 

10.5

%

 

 

 

 

11.8

%

"NM" - not meaningful information

(1)

 

Includes intersegment sales, intersegment profit in inventory eliminations and unallocated corporate expenses. There were no significant unallocated corporate expenses for the three months ended March 31, 2023 and 2022, except for $6 million and $17 million of costs associated with the planned separation of our filtration business in 2023 and 2022, respectively.

(2)

EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests.

(3)

Includes $12 million of costs associated with the planned separation of our filtration business.

(4)

 

 

Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in the Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $1 million and $1 million for the three months ended March 31, 2023 and 2022, respectively. A portion of depreciation expense is included in research, development and engineering expenses.

(5)

Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations.

(6)

Includes $31 million of Russian suspension costs reflected in the equity, royalty and interest income (loss) from investees line above.

A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:

 

 

Three months ended

 

 

March 31,

In millions

 

 

2023

 

 

 

2022

 

EBITDA

 

$

1,361

 

 

$

755

 

 

 

 

 

 

EBITDA as a percentage of net sales

 

 

16.1

%

 

 

11.8

%

 

 

 

 

 

Less:

 

 

 

 

Interest expense

 

 

87

 

 

 

17

 

Depreciation and amortization

 

 

245

 

 

 

160

 

INCOME BEFORE INCOME TAXES

 

 

1,029

 

 

 

578

 

Less: Income tax expense

 

 

223

 

 

 

155

 

CONSOLIDATED NET INCOME

 

 

806

 

 

 

423

 

Less: Net income attributable to noncontrolling interests

 

 

16

 

 

 

5

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

790

 

 

$

418

 

 

 

 

 

 

Net income attributable to Cummins Inc. as a percentage of net sales

 

 

9.3

%

 

 

6.5

%

 

 

 

 

 

CUMMINS INC. AND SUBSIDIARIES
SELECT FOOTNOTE DATA
(Unaudited)

EQUITY, ROYALTY AND INTEREST INCOME FROM INVESTEES

Equity, royalty and interest income from investees included in our Condensed Consolidated Statements of Net Income for the reporting periods was as follows:

 

 

Three months ended

 

 

 

March 31,

 

In millions

 

 

2023

 

 

 

2022

 

 

Manufacturing entities

 

 

 

 

 

Dongfeng Cummins Engine Company, Ltd.

 

$

19

 

$

16

 

 

Beijing Foton Cummins Engine Co., Ltd.

 

 

16

 

 

 

14

 

 

Chongqing Cummins Engine Company, Ltd.

 

 

9

 

 

 

9

 

 

Tata Cummins, Ltd.

 

 

8

 

 

 

9

 

 

All other manufacturers

 

 

19

 

 

 

(10

)

(1)

Distribution entities

 

 

 

 

 

Komatsu Cummins Chile, Ltda.

 

 

14

 

 

 

7

 

 

All other distributors

 

 

3

 

 

 

2

 

 

Cummins share of net income

 

 

88

 

 

 

47

 

 

Royalty and interest income

 

 

31

 

 

 

49

 

 

Equity, royalty and interest income from investees

 

$

119

 

 

$

96

 

 

 

 

 

 

 

 

(1) Includes a $28 million impairment of our joint venture with KAMAZ and $3 million of royalty charges as part of our costs associated with the suspension of our Russian operations.

INCOME TAXES

Our effective tax rate for 2023 is expected to approximate 22.0 percent, excluding any discrete items that may arise.

Our effective tax rate for the three months ended March 31, 2023, was 21.7 percent and contained favorable discrete tax items of $3 million, or $0.02 per share, primarily due to share-based compensation tax benefits.

Our effective tax rate for the three months ended March 31, 2022, was 26.8 percent and contained unfavorable discrete tax items of $31 million, or $0.22 per share, primarily due to $18 million of unfavorable changes associated with the indefinite suspension of Russian operations, $9 million of net unfavorable changes in tax reserves and $4 million of net unfavorable other discrete tax items.

CUMMINS INC. AND SUBSIDIARIES
FINANCIAL MEASURES THAT SUPPLEMENT GAAP
(Unaudited)

Reconciliation of Non GAAP measures - Earnings before interest, income taxes, depreciation and amortization and noncontrolling interests (EBITDA)

We believe EBITDA is a useful measure of our operating performance as it assists investors and debt holders in comparing our performance on a consistent basis without regard to financing methods, capital structure, income taxes or depreciation and amortization methods, which can vary significantly depending upon many factors. We believe EBITDA excluding special items is a useful measure of our operating performance without regard to the costs associated with the planned separation of our filtration business and indefinite suspension of Russian operations. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of non-cash items that are excluded from the non-GAAP outlook measure.

EBITDA is not in accordance with, or an alternative for, accounting principles generally accepted in the United States (GAAP) and may not be consistent with measures used by other companies. It should be considered supplemental data; however, the amounts included in the EBITDA calculation are derived from amounts included in the Condensed Consolidated Statements of Net Income. Below is a reconciliation of “Net income attributable to Cummins Inc.” to EBITDA for each of the applicable periods:

 

 

Three months ended

 

 

March 31,

In millions

 

 

2023

 

 

 

2022

 

Net income attributable to Cummins Inc.

 

$

790

 

 

$

418

 

 

 

 

 

 

Net income attributable to Cummins Inc. as a percentage of net sales

 

 

9.3

%

 

 

6.5

%

 

 

 

 

 

Add:

 

 

 

 

Net income attributable to noncontrolling interests

 

 

16

 

 

 

5

 

Consolidated net income

 

 

806

 

 

 

423

 

 

 

 

 

 

Add:

 

 

 

 

Interest expense

 

 

87

 

 

 

17

 

Income tax expense

 

 

223

 

 

 

155

 

Depreciation and amortization

 

 

245

 

 

 

160

 

EBITDA

 

$

1,361

 

 

$

755

 

 

 

 

 

 

EBITDA as a percentage of net sales

 

 

16.1

%

 

 

11.8

%

 

 

 

 

 

Add:

 

 

 

 

Filtration separation costs

 

 

18

 

 

 

17

 

Russian suspension costs

 

 

 

 

 

158

 

 

 

 

 

 

EBITDA, excluding costs associated with the separation of our filtration business and indefinite suspension of Russian operations

 

$

1,379

 

 

$

930

 

 

 

 

 

 

EBITDA, excluding costs associated with the separation of our filtration business and indefinite suspension of Russian operations, as a percentage of net sales

 

 

16.3

%

 

 

14.6

%

CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)

Components Segment Sales by Business

Sales for our Components segment by business, adjusted for the reorganized businesses as note above, were as follows:

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Axles and brakes

 

$

1,272

 

$

 

$

 

$

 

$

1,272

Emission solutions

 

 

1,056

 

 

 

 

 

 

 

 

 

 

 

 

1,056

 

Engine components

 

 

581

 

 

 

 

 

 

 

 

 

 

 

 

581

 

Filtration

 

 

417

 

 

 

 

 

 

 

 

 

 

 

 

417

 

Automated transmissions

 

 

179

 

 

 

 

 

 

 

 

 

 

 

 

179

 

Software and electronics

 

 

52

 

 

 

 

 

 

 

 

 

 

 

 

52

 

Total sales

 

$

3,557

 

 

$

 

 

$

 

 

$

 

 

$

3,557

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Axles and brakes

 

$

 

 

$

 

 

$

732

 

 

$

1,147

 

 

$

1,879

 

Emission solutions

 

 

910

 

 

 

863

 

 

 

853

 

 

 

868

 

 

 

3,494

 

Engine components

 

 

502

 

 

 

503

 

 

 

509

 

 

 

493

 

 

 

2,007

 

Filtration

 

 

382

 

 

 

391

 

 

 

399

 

 

 

385

 

 

 

1,557

 

Automated transmissions

 

 

134

 

 

 

143

 

 

 

159

 

 

 

157

 

 

 

593

 

Software and electronics

 

 

60

 

 

 

50

 

 

 

51

 

 

 

45

 

 

 

206

 

Total sales

 

$

1,988

 

 

$

1,950

 

 

$

2,703

 

 

$

3,095

 

 

$

9,736

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

In millions

 

YTD

 

 

 

 

 

 

 

 

Emission solutions

 

$

3,499

 

 

 

 

 

 

 

 

 

Engine components

 

 

2,009

 

 

 

 

 

 

 

 

 

Filtration

 

 

1,438

 

 

 

 

 

 

 

 

 

Automated transmissions

 

 

478

 

 

 

 

 

 

 

 

 

Software and electronics

 

 

241

 

 

 

 

 

 

 

 

 

Total sales

 

$

7,665

 

 

 

 

 

 

 

 

 

Engine Segment Sales by Market and Unit Shipments by Engine Classification

Sales for our Engine segment by market were as follows:

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

1,114

 

$

 

$

 

$

 

$

1,114

Medium-duty truck and bus

 

 

903

 

 

 

 

 

 

 

 

 

 

 

 

903

 

Light-duty automotive

 

 

439

 

 

 

 

 

 

 

 

 

 

 

 

439

 

Off-highway

 

 

530

 

 

 

 

 

 

 

 

 

 

 

 

530

 

Total sales

 

$

2,986

 

 

$

 

 

$

 

 

$

 

 

$

2,986

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

908

 

 

$

1,001

 

 

$

972

 

 

$

966

 

 

$

3,847

 

Medium-duty truck and bus

 

 

848

 

 

 

875

 

 

 

868

 

 

 

869

 

 

 

3,460

 

Light-duty automotive

 

 

498

 

 

 

456

 

 

 

466

 

 

 

318

 

 

 

1,738

 

Off-highway

 

 

499

 

 

 

443

 

 

 

473

 

 

 

485

 

 

 

1,900

 

Total sales

 

$

2,753

 

 

$

2,775

 

 

$

2,779

 

 

$

2,638

 

 

$

10,945

 

Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:

2023

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty

 

34,700

 

 

 

 

34,700

Medium-duty

 

78,900

 

 

 

 

 

 

 

 

78,900

 

Light-duty

 

55,000

 

 

 

 

 

 

 

 

55,000

 

Total units

 

168,600

 

 

 

 

 

 

 

 

168,600

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty

 

28,600

 

 

30,900

 

 

30,200

 

 

31,000

 

 

120,700

 

Medium-duty

 

72,600

 

 

68,800

 

 

69,800

 

 

72,400

 

 

283,600

 

Light-duty

 

66,500

 

 

60,400

 

 

58,300

 

 

42,400

 

 

227,600

 

Total units

 

167,700

 

 

160,100

 

 

158,300

 

 

145,800

 

 

631,900

 

Distribution Segment Sales by Product Line

Sales for our Distribution segment by product line were as follows:

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Parts

 

$

1,057

 

$

 

$

 

$

 

$

1,057

Power generation

 

 

492

 

 

 

 

 

 

 

 

 

 

 

 

492

 

Engines

 

 

456

 

 

 

 

 

 

 

 

 

 

 

 

456

 

Service

 

 

401

 

 

 

 

 

 

 

 

 

 

 

 

401

 

Total sales

 

$

2,406

 

 

$

 

 

$

 

 

$

 

 

$

2,406

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Parts

 

$

924

 

 

$

990

 

 

$

945

 

 

$

959

 

 

$

3,818

 

Power generation

 

 

401

 

 

 

441

 

 

 

431

 

 

 

501

 

 

 

1,774

 

Engines

 

 

441

 

 

 

429

 

 

 

449

 

 

 

457

 

 

 

1,776

 

Service

 

 

351

 

 

 

393

 

 

 

414

 

 

 

403

 

 

 

1,561

 

Total sales

 

$

2,117

 

 

$

2,253

 

 

$

2,239

 

 

$

2,320

 

 

$

8,929

 

Power Systems Segment Sales by Product Line and Unit Shipments by Engine Classification

Sales for our Power Systems segment by product line were as follows:

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

770

 

$

 

$

 

$

 

$

770

Industrial

 

 

455

 

 

 

 

 

 

 

 

 

 

 

 

455

 

Generator technologies

 

 

118

 

 

 

 

 

 

 

 

 

 

 

 

118

 

Total sales

 

$

1,343

 

 

$

 

 

$

 

 

$

 

 

$

1,343

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

664

 

 

$

657

 

 

$

739

 

 

$

730

 

 

$

2,790

 

Industrial

 

 

393

 

 

 

428

 

 

 

483

 

 

 

468

 

 

 

1,772

 

Generator technologies

 

 

103

 

 

 

118

 

 

 

127

 

 

 

123

 

 

 

471

 

Total sales

 

$

1,160

 

 

$

1,203

 

 

$

1,349

 

 

$

1,321

 

 

$

5,033

 

High-horsepower unit shipments by engine classification were as follows:

2023

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

2,900

 

 

 

 

2,900

Industrial

 

1,500

 

 

 

 

 

 

 

 

1,500

 

Total units

 

4,400

 

 

 

 

 

 

 

 

4,400

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

2,200

 

 

2,400

 

 

2,400

 

 

2,700

 

 

9,700

 

Industrial

 

1,100

 

 

1,200

 

 

1,200

 

 

1,400

 

 

4,900

 

Total units

 

3,300

 

 

3,600

 

 

3,600

 

 

4,100

 

 

14,600

 

 

Jon Mills, Director External Communications and Global Brand
317-658-4540
jon.mills@cummins.com

Source: Cummins Inc.