Cummins Reports Third Quarter 2023 Results

  • Third quarter revenues of $8.4 billion; GAAP1 Net Income of $656 million
  • EBITDA in the third quarter was 14.6 percent of sales; Diluted EPS of $4.59
  • Third quarter results include $26 million, or $0.14 per diluted share, of costs related to the separation of Atmus Filtration Technologies Inc.
  • Third quarter net cash provided by operating activities was a record $1.5 billion
  • The company is raising its full year 2023 revenue guidance to be up 18 to 21 percent; an increase from previous guidance of up 15 to 20 percent
  • EBITDA is now expected to be in the range of 15.2 to 15.4 percent; narrowing the range of the previous guidance of 15.0 to 15.7 percent

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

Third quarter revenues of $8.4 billion increased 15 percent from the same quarter in 2022. Sales in North America increased 16 percent and international revenues increased 13 percent due to the addition of Meritor and strong demand across most global markets. The third quarter of 2022 included two months of consolidated operations for Meritor following the completion of the acquisition on August 3, 2022.

“We delivered solid profitability and record operating cash flow in the third quarter,” said Jennifer Rumsey, Chair and CEO. “While full year revenues are at the high end of our expectations, we are seeing signs of moderating demand in some markets and are taking steps to reduce costs and position the company for success in 2024. I am deeply appreciative of our Cummins employees, who continue to innovate for our customers and demonstrate the flexibility required to meet global demand.”

Net income attributable to Cummins in the third quarter was $656 million, or $4.59 per diluted share compared to $400 million, or $2.82 per diluted share in 2022. Results included costs associated with the separation of Atmus of $26 million, or $0.14 per diluted share, in the third quarter of 2023, and $16 million in the third quarter of 2022. The third quarter of 2022 also included $77 million of acquisition, integration and inventory valuation adjustments related to Meritor. The tax rate in the third quarter was 21.4 percent including $5 million, or $0.03 per diluted share, of favorable discrete tax items, compared to $57 million of unfavorable discrete tax items a year ago.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter were $1.2 billion, or 14.6 percent of sales, compared to $884 million, or 12.1 percent of sales, a year ago. EBITDA for the third quarter of 2023 included the costs related to the separation of Atmus and the third quarter of 2022 EBITDA included costs related to the separation of Atmus and costs related to the acquisition and integration of Meritor as noted above. The third quarter of 2022 also included a one-time employee recognition bonus with a cost impact of $56 million.

Operating cash flow for the third quarter of 2023 was a record inflow of $1.5 billion, compared to $382 million in the third quarter of 2022, as we continue to focus on working capital management within the business.

2023 Outlook:

Based on its current forecast, Cummins is raising its full year 2023 revenue guidance to be up 18 to 21 percent due to strong demand across most markets, especially North America. EBITDA is expected to be in the range of 15.2 to 15.4 percent of sales, narrowing the range of the previous guidance of 15.0 to 15.7 percent of sales.

The outlook above assumes the inclusion of Atmus for the entirety of 2023, but excludes any costs or benefits associated with the planned separation of Atmus. Our forecast also excludes the impact of broader cost reduction activities that are expected in the fourth quarter. Within the Components Segment, Cummins expects revenues of the Meritor business for 2023 to be between $4.7 billion to $4.9 billion, consistent with prior guidance. EBITDA is expected to be in the range of 10.5 to 11.0 percent of sales, narrowing the range of the previous guidance of 10.3 to 11.0 percent.

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, increasing dividends and reducing debt.

“2023 will be another record year for revenue growth, however we are seeing some signs of slowing activity and are expecting lower demand in the fourth quarter. Our leadership team is experienced in managing through periods of economic uncertainty and will continue to make the decisions that ensure we drive cost improvements and maintain a strong financial position. We’ve announced several major partnerships this quarter as we continue to advance our Destination Zero strategy and remain committed to investing in future growth,” said Rumsey.

Recent Highlights:

  • 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. The planned joint venture will manufacture battery cells for electric commercial vehicles and industrial applications. Total investment by the partners is expected to be in the range of $2-3 billion for the 21-gigawatt hour (GWh) factory with production expected to begin in 2027.
  • On October 2nd Cummins completed its acquisition of two Faurecia commercial vehicle manufacturing plants and their related activities, one in Columbus, Indiana (U.S.) and one in Roermond, Netherlands. The acquisition provides an opportunity for the Cummins Emission Solutions business to ensure continued access to the technology and facilities it needs to meet current and future demand for low-emissions products and to ensure continuity for both the employees and customers of the acquired manufacturing facilities.
  • The company announced several collaborations that further enable our customers to achieve their decarbonization goals. During the third quarter, Freightliner announced they are partnering with Cummins to offer the new Cummins X15N natural gas engine in its heavy-duty Freightliner Cascadia trucks. Also, Cummins Inc. and Knight Transportation, Inc. announced that the industry's largest full truckload company has successfully tested Cummins’ new X15N engine in Southern California, using renewable natural gas to realize reductions in nitrous oxides and greenhouse gas without compromising performance. The X15N, which will launch in North America in 2024, is the first natural gas engine to be designed specifically for heavy-duty and on-highway truck applications.
  • Cummins received several prestigious honors during the quarter, including earning the number four spot on Forbes' sixth annual ranking of America’s Best Employers for Women, up from last year’s ranking at number 26. Also, Cummins was named Employer of the Year by Diesel Progress, named a Best Place to Work for Disability Inclusion for the third year in a row, and received a 2023 Energy Management Insight Award from the Clean Energy Ministerial.
  • Cummins increased its quarterly common stock cash dividend from $1.57 to $1.68 per share. The company has increased the quarterly dividend to shareholders for 14 consecutive years.

1 Generally Accepted Accounting Principles in the U.S.

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

Components Segment

  • Sales - $3.2 billion, up 20 percent
  • Segment EBITDA - $441 million, or 13.6 percent of sales, which includes $20 million of costs related to the separation of Atmus compared to $297 million, or 11.0 percent of sales in the prior year, which included $10 million of costs related to the separation of Atmus. The third quarter of 2022 also included $77 million of acquisition, integration and inventory valuation adjustments related to Meritor.
  • Revenues in North America increased by 21 percent and international sales increased by 19 percent due to an additional month of Meritor operations and increased global demand.

Engine Segment

  • Sales - $2.9 billion, up 5 percent
  • Segment EBITDA - $395 million, or 13.5 percent of sales, compared to $362 million or 13.0 percent of sales
  • On-highway revenues increased 8 percent driven by strong demand in the North American truck market and pricing actions.
  • Sales increased 5 percent in North America and grew 7 percent in international markets due to an increase in global demand.

Distribution Segment

  • Sales - $2.5 billion, up 13 percent
  • Segment EBITDA - $306 million, or 12.1 percent of sales, compared to $225 million, or 10.0 percent of sales
  • Revenues in North America increased 14 percent and international sales increased by 11 percent.
  • Higher revenues were driven by increased demand for whole goods, especially power generation products, and pricing actions.

Power Systems Segment

  • Sales - $1.4 billion, up 7 percent
  • Segment EBITDA - $234 million, or 16.2 percent of sales, compared to $193 million, or 14.3 percent of sales
  • Power generation revenues increased 15 percent driven by increased global demand and pricing actions. Industrial revenues decreased 2 percent due to lower mining aftermarket parts demand.

Accelera Segment

  • Sales - $103 million, up 106 percent
  • Segment EBITDA loss - $114 million
  • Revenues increased due to higher demand for battery electric systems, increased electrolyzer installations, and the additions of the Siemens Commercial Vehicle business and electric powertrain portion of the Meritor 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. The company continues to make investments to support our customers through the energy transition and deliver future profitable growth.

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; uncertainties and risks related to timing and potential value to both Atmus Filtration Technologies Inc. (Atmus) and Cummins of the planned separation of Atmus, including business, industry and market risks, as well as the risks involving the anticipated favorable tax treatment if there is a significant delay in the completion of the envisioned separation; 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 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

 

 

September 30,

In millions, except per share amounts

 

 

2023

 

 

 

2022

 

NET SALES

 

$

8,431

 

$

7,333

Cost of sales

 

 

6,360

 

 

 

5,691

 

GROSS MARGIN

 

 

2,071

 

 

 

1,642

 

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

 

831

 

 

 

708

 

Research, development and engineering expenses

 

 

376

 

 

 

348

 

Equity, royalty and interest income from investees

 

 

118

 

 

 

70

 

Other operating expense, net

 

 

32

 

 

 

30

 

OPERATING INCOME

 

 

950

 

 

 

626

 

Interest expense

 

 

97

 

 

 

61

 

Other income, net

 

 

25

 

 

 

43

 

INCOME BEFORE INCOME TAXES

 

 

878

 

 

 

608

 

Income tax expense

 

 

188

 

 

 

199

 

CONSOLIDATED NET INCOME

 

 

690

 

 

 

409

 

Less: Net income attributable to noncontrolling interests

 

 

34

 

 

 

9

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

656

 

 

$

400

 

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

4.63

 

 

$

2.83

 

Diluted

 

$

4.59

 

 

$

2.82

 

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

 

141.8

 

 

 

141.1

 

Diluted

 

 

142.8

 

 

 

142.0

 

 

 

 

 

 

(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 NET INCOME

(Unaudited) (a)

 

 

 

Nine months ended

 

 

September 30,

In millions, except per share amounts

 

 

2023

 

 

 

2022

 

NET SALES

 

$

25,522

 

$

20,304

Cost of sales

 

 

19,274

 

 

 

15,404

 

GROSS MARGIN

 

 

6,248

 

 

 

4,900

 

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

 

2,457

 

 

 

1,945

 

Research, development and engineering expenses

 

 

1,110

 

 

 

945

 

Equity, royalty and interest income from investees

 

 

370

 

 

 

261

 

Other operating expense, net

 

 

78

 

 

 

144

 

OPERATING INCOME

 

 

2,973

 

 

 

2,127

 

Interest expense

 

 

283

 

 

 

112

 

Other income, net

 

 

166

 

 

 

26

 

INCOME BEFORE INCOME TAXES

 

 

2,856

 

 

 

2,041

 

Income tax expense

 

 

623

 

 

 

502

 

CONSOLIDATED NET INCOME

 

 

2,233

 

 

 

1,539

 

Less: Net income attributable to noncontrolling interests

 

 

67

 

 

 

19

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

2,166

 

 

$

1,520

 

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

15.29

 

 

$

10.74

 

Diluted

 

$

15.19

 

 

$

10.68

 

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

 

141.7

 

 

 

141.5

 

Diluted

 

 

142.6

 

 

 

142.3

 

 

 

 

 

 

(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

 

September 30,
2023

 

December 31,
2022

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

2,387

 

 

$

2,020

 

Restricted cash

 

 

225

 

 

 

81

 

Marketable securities

 

 

452

 

 

 

472

 

Total cash, cash equivalents, restricted cash and marketable securities

 

 

3,064

 

 

 

2,573

 

Accounts and notes receivable, net

 

 

5,662

 

 

 

5,202

 

Inventories

 

 

5,906

 

 

 

5,603

 

Prepaid expenses and other current assets

 

 

1,280

 

 

 

1,073

 

Total current assets

 

 

15,912

 

 

 

14,451

 

Long-term assets

 

 

 

 

Property, plant and equipment, net

 

 

5,801

 

 

 

5,521

 

Investments and advances related to equity method investees

 

 

1,785

 

 

 

1,759

 

Goodwill

 

 

2,379

 

 

 

2,343

 

Other intangible assets, net

 

 

2,518

 

 

 

2,687

 

Pension assets

 

 

1,500

 

 

 

1,398

 

Other assets

 

 

2,202

 

 

 

2,140

 

Total assets

 

$

32,097

 

 

$

30,299

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable (principally trade)

 

$

4,262

 

 

$

4,252

 

Loans payable

 

 

231

 

 

 

210

 

Commercial paper

 

 

1,710

 

 

 

2,574

 

Current maturities of long-term debt

 

 

573

 

 

 

573

 

Accrued compensation, benefits and retirement costs

 

 

884

 

 

 

617

 

Current portion of accrued product warranty

 

 

731

 

 

 

726

 

Current portion of deferred revenue

 

 

1,029

 

 

 

1,004

 

Other accrued expenses

 

 

1,706

 

 

 

1,465

 

Total current liabilities

 

 

11,126

 

 

 

11,421

 

Long-term liabilities

 

 

 

 

Long-term debt

 

 

4,950

 

 

 

4,498

 

Deferred revenue

 

 

1,011

 

 

 

844

 

Other liabilities

 

 

3,332

 

 

 

3,311

 

Total liabilities

 

$

20,419

 

 

$

20,074

 

 

 

 

 

 

Redeemable noncontrolling interests

 

$

 

 

$

258

 

 

 

 

 

 

EQUITY

 

 

 

 

Cummins Inc. shareholders’ equity

 

 

 

 

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

 

$

2,558

 

 

$

2,243

 

Retained earnings

 

 

19,520

 

 

 

18,037

 

Treasury stock, at cost, 80.8 and 81.2 shares

 

 

(9,369

)

 

 

(9,415

)

Accumulated other comprehensive loss

 

 

(2,051

)

 

 

(1,890

)

Total Cummins Inc. shareholders’ equity

 

 

10,658

 

 

 

8,975

 

Noncontrolling interests

 

 

1,020

 

 

 

992

 

Total equity

 

$

11,678

 

 

$

9,967

 

Total liabilities, redeemable noncontrolling interests and equity

 

$

32,097

 

 

$

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

 

 

September 30,

In millions

 

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Consolidated net income

 

$

690

 

 

$

409

 

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

 

 

Depreciation and amortization

 

 

257

 

 

 

216

 

Deferred income taxes

 

 

(106

)

 

 

(82

)

Equity in income of investees, net of dividends

 

 

13

 

 

 

32

 

Pension and OPEB expense

 

 

1

 

 

 

6

 

Pension contributions and OPEB payments

 

 

(12

)

 

 

(16

)

Russian suspension costs, net of recoveries

 

 

 

 

 

1

 

Changes in current assets and liabilities, net of acquisitions

 

 

 

 

Accounts and notes receivable

 

 

188

 

 

 

(81

)

Inventories

 

 

85

 

 

 

(99

)

Other current assets

 

 

(54

)

 

 

47

 

Accounts payable

 

 

(22

)

 

 

(73

)

Accrued expenses

 

 

282

 

 

 

157

 

Other, net

 

 

207

 

 

 

(135

)

Net cash provided by operating activities

 

 

1,529

 

 

 

382

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

 

(280

)

 

 

(202

)

Acquisitions of businesses, net of cash acquired

 

 

7

 

 

 

(2,763

)

Investments in marketable securities—acquisitions

 

 

(328

)

 

 

(305

)

Investments in marketable securities—liquidations

 

 

382

 

 

 

358

 

Other, net

 

 

(35

)

 

 

(8

)

Net cash used in investing activities

 

 

(254

)

 

 

(2,920

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from borrowings

 

 

42

 

 

 

2,020

 

Net borrowings of commercial paper

 

 

92

 

 

 

1,688

 

Payments on borrowings and finance lease obligations

 

 

(163

)

 

 

(999

)

Dividend payments on common stock

 

 

(238

)

 

 

(222

)

Repurchases of common stock

 

 

 

 

 

(23

)

Payments for purchase of redeemable noncontrolling interests

 

 

(175

)

 

 

 

Other, net

 

 

(24

)

 

 

38

 

Net cash (used in) provided by financing activities

 

 

(466

)

 

 

2,502

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

1

 

 

 

73

 

Net increase in cash, cash equivalents and restricted cash

 

 

810

 

 

 

37

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

1,802

 

 

 

2,462

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 

$

2,612

 

 

$

2,499

 

 

 

 

 

 

(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)

 

 

 

Nine months ended

 

 

September 30,

In millions

 

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Consolidated net income

 

$

2,233

 

 

$

1,539

 

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

 

 

 

 

Depreciation and amortization

 

 

760

 

 

 

544

 

Deferred income taxes

 

 

(238

)

 

 

(194

)

Equity in income of investees, net of dividends

 

 

(100

)

 

 

(30

)

Pension and OPEB expense

 

 

4

 

 

 

23

 

Pension contributions and OPEB payments

 

 

(115

)

 

 

(71

)

Russian suspension costs, net of recoveries

 

 

 

 

 

112

 

Changes in current assets and liabilities, net of acquisitions

 

 

 

 

Accounts and notes receivable

 

 

(447

)

 

 

(333

)

Inventories

 

 

(318

)

 

 

(597

)

Other current assets

 

 

(191

)

 

 

(18

)

Accounts payable

 

 

43

 

 

 

353

 

Accrued expenses

 

 

543

 

 

 

(124

)

Other, net

 

 

333

 

 

 

(59

)

Net cash provided by operating activities

 

 

2,507

 

 

 

1,145

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

 

(694

)

 

 

(453

)

Acquisitions of businesses, net of cash acquired

 

 

(127

)

 

 

(3,008

)

Investments in marketable securities—acquisitions

 

 

(976

)

 

 

(738

)

Investments in marketable securities—liquidations

 

 

1,002

 

 

 

819

 

Other, net

 

 

(65

)

 

 

(116

)

Net cash used in investing activities

 

 

(860

)

 

 

(3,496

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from borrowings

 

 

779

 

 

 

2,076

 

Net (payments) borrowings of commercial paper

 

 

(566

)

 

 

2,080

 

Payments on borrowings and finance lease obligations

 

 

(391

)

 

 

(1,070

)

Dividend payments on common stock

 

 

(683

)

 

 

(633

)

Repurchases of common stock

 

 

 

 

 

(370

)

Payments for purchase of redeemable noncontrolling interests

 

 

(175

)

 

 

 

Other, net

 

 

(33

)

 

 

28

 

Net cash (used in) provided by financing activities

 

 

(1,069

)

 

 

2,111

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(67

)

 

 

147

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

511

 

 

 

(93

)

Cash, cash equivalents and restricted cash at beginning of year

 

 

2,101

 

 

 

2,592

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 

$

2,612

 

 

$

2,499

 

 

 

 

 

 

(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)

 

In millions

 

Components

 

Engine

 

Distribution

 

Power Systems

 

Accelera

 

Total Segments

 

Intersegment Eliminations (1)

 

Total

Three months ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

2,780

 

 

$

2,236

 

 

$

2,519

 

 

$

798

 

 

$

98

 

 

$

8,431

 

 

$

 

 

$

8,431

 

Intersegment sales

 

 

456

 

 

 

695

 

 

 

16

 

 

 

646

 

 

 

5

 

 

 

1,818

 

 

 

(1,818

)

 

 

 

Total sales

 

 

3,236

 

 

 

2,931

 

 

 

2,535

 

 

 

1,444

 

 

 

103

 

 

 

10,249

 

 

 

(1,818

)

 

 

8,431

 

Research, development and engineering expenses

 

 

93

 

 

 

159

 

 

 

14

 

 

 

60

 

 

 

50

 

 

 

376

 

 

 

 

 

 

376

 

Equity, royalty and interest income (loss) from investees

 

 

26

 

 

 

62

 

 

 

22

 

 

 

11

 

 

 

(3

)

 

 

118

 

 

 

 

 

 

118

 

Interest income

 

 

8

 

 

 

4

 

 

 

9

 

 

 

3

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

EBITDA (2)

 

 

441

 

(3)

 

395

 

 

 

306

 

 

 

234

 

 

 

(114

)

 

 

1,262

 

 

 

(32

)

 

 

1,230

 

Depreciation and amortization (4)

 

 

120

 

 

 

59

 

 

 

28

 

 

 

30

 

 

 

18

 

 

 

255

 

 

 

 

 

 

255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of segment sales

 

 

13.6

%

 

 

13.5

%

 

 

12.1

%

 

 

16.2

%

 

 

NM

 

 

 

12.3

%

 

 

 

 

14.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

2,220

 

 

$

2,063

 

 

$

2,232

 

 

$

773

 

 

$

45

 

 

$

7,333

 

 

$

 

 

$

7,333

 

Intersegment sales

 

 

483

 

 

 

716

 

 

 

7

 

 

 

576

 

 

 

5

 

 

 

1,787

 

 

 

(1,787

)

 

 

 

Total sales

 

 

2,703

 

 

 

2,779

 

 

 

2,239

 

 

 

1,349

 

 

 

50

 

 

 

9,120

 

 

 

(1,787

)

 

 

7,333

 

Research, development and engineering expenses

 

 

87

 

 

 

140

 

 

 

13

 

 

 

62

 

 

 

46

 

 

 

348

 

 

 

 

 

 

348

 

Equity, royalty and interest income (loss) from investees

 

 

17

 

 

 

27

 

 

 

20

 

 

 

10

 

 

 

(4

)

 

 

70

 

 

 

 

 

 

70

 

Interest income

 

 

4

 

 

 

3

 

 

 

4

 

 

 

3

 

 

 

 

 

 

14

 

 

 

 

 

 

14

 

Russian suspension costs

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

EBITDA (2)

 

 

297

 

(5)

 

362

 

 

 

225

 

 

 

193

 

 

 

(95

)

 

 

982

 

 

 

(98

)

 

 

884

 

Depreciation and amortization (4)

 

 

95

 

 

 

51

 

 

 

29

 

 

 

30

 

 

 

10

 

 

 

215

 

 

 

 

 

 

215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of segment sales

 

 

11.0

%

 

 

13.0

%

 

 

10.0

%

 

 

14.3

%

 

 

NM

 

 

 

10.8

%

 

 

 

 

12.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"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 September 30, 2023 and 2022, except for $6 million and $6 million of costs associated with the separation of Atmus Filtration Technologies Inc. (Atmus) 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 $20 million of costs associated with the separation of Atmus for the three months ended September 30, 2023.

(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. A portion of depreciation expense is included in research, development and engineering expenses.

(5) Includes $45 million of costs related to the acquisition and integration of Meritor and $10 million costs associated with the separation of Atmus for the three months ended September 30, 2022.

 

CUMMINS INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

 

In millions

 

Components

 

Engine

 

Distribution

 

Power Systems

 

Accelera

 

Total Segments

 

Intersegment Eliminations (1)

 

Total

Nine months ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

8,747

 

 

$

6,751

 

 

$

7,494

 

 

$

2,271

 

 

$

259

 

 

$

25,522

 

 

$

 

 

$

25,522

 

Intersegment sales

 

 

1,471

 

 

 

2,154

 

 

 

42

 

 

 

1,973

 

 

 

14

 

 

 

5,654

 

 

 

(5,654

)

 

 

 

Total sales

 

 

10,218

 

 

 

8,905

 

 

 

7,536

 

 

 

4,244

 

 

 

273

 

 

 

31,176

 

 

 

(5,654

)

 

 

25,522

 

Research, development and engineering expenses

 

 

287

 

 

 

441

 

 

 

43

 

 

 

189

 

 

 

150

 

 

 

1,110

 

 

 

 

 

 

1,110

 

Equity, royalty and interest income (loss) from investees

 

 

71

 

 

 

198

 

 

 

70

 

 

 

42

 

 

 

(11

)

 

 

370

 

 

 

 

 

 

370

 

Interest income

 

 

21

 

 

 

14

 

 

 

24

 

 

 

7

 

 

 

1

 

 

 

67

 

 

 

 

 

 

67

 

EBITDA (2)

 

 

1,434

 

(3)

 

1,277

 

 

 

940

 

 

 

654

 

 

 

(322

)

 

 

3,983

 

 

 

(88

)

 

 

3,895

 

Depreciation and amortization (4)

 

 

368

 

 

 

166

 

 

 

84

 

 

 

91

 

 

 

47

 

 

 

756

 

 

 

 

 

 

756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

14.0

%

 

 

14.3

%

 

 

12.5

%

 

 

15.4

%

 

 

NM

 

 

 

12.8

%

 

 

 

 

15.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

5,214

 

 

$

6,204

 

 

$

6,590

 

 

$

2,190

 

 

$

106

 

 

$

20,304

 

 

$

 

 

$

20,304

 

Intersegment sales

 

 

1,427

 

 

 

2,103

 

 

 

19

 

 

 

1,522

 

 

 

17

 

 

 

5,088

 

 

 

(5,088

)

 

 

 

Total sales

 

 

6,641

 

 

 

8,307

 

 

 

6,609

 

 

 

3,712

 

 

 

123

 

 

 

25,392

 

 

 

(5,088

)

 

 

20,304

 

Research, development and engineering expenses

 

 

236

 

 

 

365

 

 

 

39

 

 

 

184

 

 

 

121

 

 

 

945

 

 

 

 

 

 

945

 

Equity, royalty and interest income (loss) from investees

 

 

54

 

 

 

127

 

(5)

 

57

 

 

 

31

 

 

 

(8

)

 

 

261

 

 

 

 

 

 

261

 

Interest income

 

 

7

 

 

 

8

 

 

 

9

 

 

 

5

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

Russian suspension costs

 

 

5

 

 

 

33

 

(6)

 

55

 

 

 

19

 

 

 

 

 

 

112

 

 

 

 

 

 

112

 

EBITDA (2)

 

 

969

 

(7)

 

1,173

 

 

 

632

 

 

 

411

 

 

 

(239

)

 

 

2,946

 

 

 

(252

)

 

 

2,694

 

Depreciation and amortization (4)

 

 

187

 

 

 

151

 

 

 

86

 

 

 

92

 

 

 

25

 

 

 

541

 

 

 

 

 

 

541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

14.6

%

 

 

14.1

%

 

 

9.6

%

 

 

11.1

%

 

 

NM

 

 

 

11.6

%

 

 

 

 

13.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"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 nine months ended September 30, 2023 and 2022, except for $17 million and $47 million of costs associated with the initial public offering (IPO) and separation of Atmus 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 $50 million of costs associated with the IPO and separation of Atmus for the nine months ended September 30, 2023.

(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 $4 million and $3 million for the nine months ended September 30, 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 indefinite 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.

(7) Includes $56 million of costs related to the acquisition and integration of Meritor and $15 million costs associated with the separation of Atmus for the nine months ended September 30, 2022.

 

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

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

In millions

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

Manufacturing entities

 

 

 

 

 

 

 

 

 

Dongfeng Cummins Engine Company, Ltd.

 

$

15

 

$

8

 

$

52

 

$

35

 

Beijing Foton Cummins Engine Co., Ltd.

 

 

8

 

 

 

6

 

 

 

33

 

 

 

34

 

 

Chongqing Cummins Engine Company, Ltd.

 

 

7

 

 

 

7

 

 

 

29

 

 

 

23

 

 

Tata Cummins, Ltd.

 

 

6

 

 

 

5

 

 

 

21

 

 

 

19

 

 

All other manufacturers

 

 

18

 

 

 

11

 

 

 

69

 

 

 

14

 

(1)

Distribution entities

 

 

 

 

 

 

 

 

 

Komatsu Cummins Chile, Ltda.

 

 

13

 

 

 

13

 

 

 

40

 

 

 

32

 

 

All other distributors

 

 

3

 

 

 

3

 

 

 

10

 

 

 

8

 

 

Cummins share of net income

 

 

70

 

 

 

53

 

 

 

254

 

 

 

165

 

 

Royalty and interest income

 

 

48

 

 

 

17

 

 

 

116

 

 

 

96

 

 

Equity, royalty and interest income from investees

 

$

118

 

 

$

70

 

 

$

370

 

 

$

261

 

 

 

 

 

 

 

 

 

 

 

 

(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 indefinite 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 rates for the three and nine months ended September 30, 2023, were 21.4 percent and 21.8 percent, respectively. Our effective tax rates for the three and nine months ended September 30, 2022, were 32.7 percent and 24.6 percent, respectively.

The three months ended September 30, 2023, contained net favorable discrete tax items of $5 million, or $0.03 per share, primarily due to $13 million of favorable return to provision adjustments and $1 million of favorable share-based compensation tax benefits, partially offset by $9 million of unfavorable adjustments for uncertain tax positions.

The nine months ended September 30, 2023, contained net favorable discrete tax items of $5 million, or $0.03 per share, primarily due to $15 million of favorable return to provision adjustments and $5 million of favorable share-based compensation tax benefit, partially offset by $11 million of unfavorable adjustments for uncertain tax positions and $4 million of other unfavorable adjustments.

The three months ended September 30, 2022, contained unfavorable discrete tax items of $57 million, or $0.40 per share, primarily due to $51 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus and $10 million of unfavorable return to provision adjustments, partially offset by $4 million of net favorable other discrete tax items.

The nine months ended September 30, 2022, contained unfavorable net discrete tax items of $52 million, or $0.37 per share, primarily due to $69 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of Atmus and $10 million of unfavorable return to provision adjustments, partially offset by $27 million of favorable changes in tax reserves.

SUBSEQUENT EVENTS

On October 2, 2023, we purchased from the Forvia Group all of the equity ownership of Faurecia's U.S. and Europe commercial vehicle exhaust business for approximately €199 million, subject to certain adjustments set forth in the agreement. This business provides canning and assembly operations for full exhaust systems primarily for the on-highway applications. This acquisition will be included in our Components segment starting in the fourth quarter of 2023.

On October 2, 2023, we repaid our $500 million senior notes, due 2023, using a combination of cash on hand and additional commercial paper borrowings. On October 31, 2023, we repaid $150 million of our term loan, due 2025, using cash on hand.

 

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 IPO and separation of Atmus and Meritor acquisition, integration and inventory valuation adjustments. 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

 

Nine months ended

 

 

September 30,

 

September 30,

In millions

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income attributable to Cummins Inc.

 

$

656

 

 

$

400

 

 

$

2,166

 

 

$

1,520

 

 

 

 

 

 

 

 

 

 

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

 

 

7.8

%

 

 

5.5

%

 

 

8.5

%

 

 

7.5

%

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

 

34

 

 

 

9

 

 

 

67

 

 

 

19

 

Consolidated net income

 

 

690

 

 

 

409

 

 

 

2,233

 

 

 

1,539

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

Interest expense

 

 

97

 

 

 

61

 

 

 

283

 

 

 

112

 

Income tax expense

 

 

188

 

 

 

199

 

 

 

623

 

 

 

502

 

Depreciation and amortization

 

 

255

 

 

 

215

 

 

 

756

 

 

 

541

 

EBITDA

 

$

1,230

 

 

$

884

 

 

$

3,895

 

 

$

2,694

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of net sales

 

 

14.6

%

 

 

12.1

%

 

 

15.3

%

 

 

13.3

%

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

Atmus IPO and separation costs

 

 

26

 

 

 

16

 

 

 

67

 

 

 

62

 

Meritor acquisition, integration and inventory valuation adjustments

 

 

 

 

 

77

 

 

 

 

 

 

88

 

EBITDA, excluding costs associated with the IPO and separation of Atmus and impact of Meritor acquisition, integration and inventory valuation adjustments

 

$

1,256

 

 

$

977

 

 

$

3,962

 

 

$

2,844

 

 

 

 

 

 

 

 

 

 

EBITDA, excluding costs associated with the IPO and separation of Atmus and impact of Meritor acquisition, integration and inventory valuation adjustments, as a percentage of net sales

 

 

14.9

%

 

 

13.3

%

 

 

15.5

%

 

 

14.0

%

 

CUMMINS INC. AND SUBSIDIARIES

SEGMENT SALES DATA

(Unaudited)

 

Components Segment Sales by Business

In the second quarter of 2023, with the Atmus IPO we changed the name of our filtration business to Atmus. Sales for our Components segment by business, adjusted for the reorganized businesses, were as follows:

2023

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Axles and brakes

 

$

1,272

 

$

1,249

 

$

1,177

 

$

 

$

3,698

Emission solutions

 

 

1,056

 

 

 

964

 

 

 

893

 

 

 

 

 

 

2,913

 

Engine components

 

 

581

 

 

 

557

 

 

 

532

 

 

 

 

 

 

1,670

 

Atmus

 

 

417

 

 

 

417

 

 

 

396

 

 

 

 

 

 

1,230

 

Automated transmissions

 

 

179

 

 

 

179

 

 

 

187

 

 

 

 

 

 

545

 

Software and electronics

 

 

52

 

 

 

59

 

 

 

51

 

 

 

 

 

 

162

 

Total sales

 

$

3,557

 

 

$

3,425

 

 

$

3,236

 

 

$

 

 

$

10,218

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Atmus

 

 

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

 

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

 

$

1,117

 

$

1,116

 

$

 

$

3,347

Medium-duty truck and bus

 

 

903

 

 

 

942

 

 

 

931

 

 

 

 

 

 

2,776

 

Light-duty automotive

 

 

439

 

 

 

445

 

 

 

455

 

 

 

 

 

 

1,339

 

Off-highway

 

 

530

 

 

 

484

 

 

 

429

 

 

 

 

 

 

1,443

 

Total sales

 

$

2,986

 

 

$

2,988

 

 

$

2,931

 

 

$

 

 

$

8,905

 

 

 

 

 

 

 

 

 

 

 

 

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

 

36,400

 

36,300

 

 

107,400

Medium-duty

 

78,900

 

 

76,000

 

 

71,300

 

 

 

 

226,200

 

Light-duty

 

55,000

 

 

53,600

 

 

53,300

 

 

 

 

161,900

 

Total units

 

168,600

 

 

166,000

 

 

160,900

 

 

 

 

495,500

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1,019

 

$

995

 

$

 

$

3,071

Power generation

 

 

492

 

 

 

614

 

 

 

606

 

 

 

 

 

 

1,712

 

Engines

 

 

456

 

 

 

531

 

 

 

511

 

 

 

 

 

 

1,498

 

Service

 

 

401

 

 

 

431

 

 

 

423

 

 

 

 

 

 

1,255

 

Total sales

 

$

2,406

 

 

$

2,595

 

 

$

2,535

 

 

$

 

 

$

7,536

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

854

 

$

850

 

$

 

$

2,474

Industrial

 

 

455

 

 

 

468

 

 

 

475

 

 

 

 

 

 

1,398

 

Generator technologies

 

 

118

 

 

 

135

 

 

 

119

 

 

 

 

 

 

372

 

Total sales

 

$

1,343

 

 

$

1,457

 

 

$

1,444

 

 

$

 

 

$

4,244

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3,300

 

2,800

 

 

9,000

Industrial

 

1,500

 

 

1,600

 

 

1,800

 

 

 

 

4,900

 

Total units

 

4,400

 

 

4,900

 

 

4,600

 

 

 

 

13,900

 

 

 

 

 

 

 

 

 

 

 

 

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
317-658-4540
jon.mills@cummins.com

Source: Cummins Inc.