-
First quarter revenues of
$8.4 billion ; GAAP1 Net Income of$2.0 billion -
EBITDA in the first quarter was 30.6% of sales; Diluted EPS of
$14.03 -
First quarter results include a net gain of
$1.3 billion , or$9.08 per diluted share, related to the separation of Atmus and$29 million , or$0.15 per diluted share, of restructuring expenses. - The company is raising its guidance for full year 2024 revenue and EBITDA after adjusting for the separation of Atmus.
- Full year revenues are expected to decline 2% to 5%; prior guidance was also down 2% to 5% but assumed the inclusion of Atmus revenues for the full year.
- EBITDA is now expected to be in the range of 14.5% to 15.5%; an increase from previous guidance of 14.4% to 15.4% which also included Atmus for the full year.
“We continued to see strong demand from customers in the first quarter of 2024, reflecting the quality and performance of our products,” said
First quarter revenues of
Net income attributable to
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were
2024 Outlook:
Based on its current forecast,
“We have raised our expectations on revenue and profitability for 2024 due to continued demand for Cummins’ products and services. We do still expect slowing demand in some of our key markets in the second half of the year,” said Rumsey. “Despite lower sales,
First Quarter 2024 Highlights:
-
In March,
Cummins finalized the separation of Atmus Filtration Technologies Inc. through a share exchange offer in which shareholders had the option to exchange their shares ofCummins common stock for shares of Atmus. Following completion of the exchange offer,Cummins did not retain any outstanding shares of Atmus common stock.
-
Accelera™ by
Cummins ,Daimler Trucks & Buses and PACCAR selectedMarshall County, Mississippi , as the future site of advanced battery cell manufacturing for their planned joint venture. The joint venture will localize battery cell production for commercial electric vehicles and is expected to create more than 2,000U.S. manufacturing jobs, with the option for further expansion as demand grows. The 21-gigawatt hour (GWh) factory is expected to begin producing battery cells in 2027.
-
Cummins re-introduced the fuel agnostic platforms with a name that captures the innovation that powers the business forward, theCummins HELM™ platforms. With higher efficiency, lower emissions and multiple fuels, theCummins HELM™ platforms give customers control of how they navigate their own journeys as part of the energy transition. As the next product in theCummins HELM™15-liter platform,Cummins announced it will launch the next generation diesel X15 inNorth America for the heavy-duty on-highway market which will be compliant withU.S. EPA and CARB 2027 aligned regulations at launch.
-
In April,
Cummins Power Generation introduced four new generator sets to the award-winning Centum™ Series, two each powered by Cummins’ QSK50 and QSK78 engines. In response to high market demand, these new models have been engineered specifically for the most critical applications such as data centers, healthcare facilities and wastewater treatment plants. These products build on decades of experience meeting our customers' needs and deliver a step-change improvement in power density, assured reliability, sustainability and low emissions.
-
Cummins received several prestigious honors during the quarter including being ranked in the Financial Times Diversity Leaders list for the third consecutive year, winning the World 50 Inclusion & Diversity Impact Award, and being named industry leader in the Commercial Vehicle and Machinery category for America’s Most JUST Companies list. Also,Cummins was named a 2024 Handshake Early Talent Award winner for its role in shaping the workforce of the future and was recognized as a 2024 Top Hispanic Employer byDiversityComm Magazine .
1 Generally Accepted Accounting Principles in the
First quarter 2024 detail (all comparisons to same period in 2023):
Components Segment
-
Sales -
$3.3 billion , down 6% -
Segment EBITDA -
$473 million , or 14.2% of sales, which includes$21 million of costs related to the separation of Atmus compared to$507 million , or 14.3% of sales, which includes$12 million of costs related to the separation of Atmus -
Revenues in
North America decreased by 5% and international sales decreased by 8% primarily due to lower demand inChina andEurope .
Engine Segment
-
Sales -
$2.9 billion , down 2% -
Segment EBITDA -
$414 million , or 14.1% of sales, compared to$457 million , or 15.3% of sales - On-highway revenues increased 1% driven by continued strong demand in the North American medium-duty truck market and pricing actions.
-
Sales were flat in
North America and decreased 8% in international markets due to lower demand inChina andEurope .
Distribution Segment
-
Sales -
$2.5 billion , up 5% -
Segment EBITDA -
$294 million , or 11.6% of sales, compared to$335 million , or 13.9% of sales -
Revenues in
North America increased 2% and international sales increased by 14%. - Higher revenues were driven by increased demand for power generation products and pricing actions.
Power Systems Segment
-
Sales -
$1.4 billion , up 3% -
Segment EBITDA -
$237 million , or 17.1% of sales, compared to$219 million , or 16.3% of sales - Power generation revenues increased 11% driven by increased global demand, particularly for the data center market. Industrial revenues decreased 8% primarily due to weaker demand in oil and gas markets.
Accelera Segment
-
Sales -
$93 million , up 9% -
Segment EBITDA loss -
$101 million - Revenues increased due to increased electrolyzer installations.
- 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
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, EBITDA and Agreement in Principle to settle regulatory proceedings regarding our emissions certification and compliance process for pick-up truck applications. 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 consequences resulting from entering into the Agreement in Principle, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; 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
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.
Webcast information
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME |
||||||
(Unaudited) (a) |
||||||
|
|
Three months ended |
||||
|
|
|
||||
In millions, except per share amounts |
|
2024 |
|
2023 |
||
|
|
$ |
8,403 |
|
$ |
8,453 |
Cost of sales |
|
|
6,362 |
|
|
6,424 |
GROSS MARGIN |
|
|
2,041 |
|
|
2,029 |
OPERATING EXPENSES AND INCOME |
|
|
|
|
||
Selling, general and administrative expenses |
|
|
839 |
|
|
753 |
Research, development and engineering expenses |
|
|
369 |
|
|
350 |
Equity, royalty and interest income from investees |
|
|
123 |
|
|
119 |
Other operating expense, net |
|
|
33 |
|
|
19 |
OPERATING INCOME |
|
|
923 |
|
|
1,026 |
Interest expense |
|
|
89 |
|
|
87 |
Other income, net |
|
|
1,387 |
|
|
90 |
INCOME BEFORE INCOME TAXES |
|
|
2,221 |
|
|
1,029 |
Income tax expense |
|
|
193 |
|
|
223 |
CONSOLIDATED NET INCOME |
|
|
2,028 |
|
|
806 |
Less: Net income attributable to noncontrolling interests |
|
|
35 |
|
|
16 |
NET INCOME ATTRIBUTABLE TO |
|
$ |
1,993 |
|
$ |
790 |
|
|
|
|
|
||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO |
|
|
|
|
||
Basic |
|
$ |
14.10 |
|
$ |
5.58 |
Diluted |
|
$ |
14.03 |
|
$ |
5.55 |
|
|
|
|
|
||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
||
Basic |
|
|
141.3 |
|
|
141.5 |
Diluted |
|
|
142.1 |
|
|
142.4 |
|
|
|
|
|
||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in |
||||||
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) (a) |
||||||||
In millions, except par value |
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
2,541 |
|
|
$ |
2,179 |
|
Marketable securities |
|
|
510 |
|
|
|
562 |
|
Total cash, cash equivalents and marketable securities |
|
|
3,051 |
|
|
|
2,741 |
|
Accounts and notes receivable, net |
|
|
5,463 |
|
|
|
5,583 |
|
Inventories |
|
|
5,758 |
|
|
|
5,677 |
|
Prepaid expenses and other current assets |
|
|
1,348 |
|
|
|
1,197 |
|
Total current assets |
|
|
15,620 |
|
|
|
15,198 |
|
Long-term assets |
|
|
|
|
||||
Property, plant and equipment, net |
|
|
6,011 |
|
|
|
6,249 |
|
Investments and advances related to equity method investees |
|
|
1,774 |
|
|
|
1,800 |
|
|
|
|
2,406 |
|
|
|
2,499 |
|
Other intangible assets, net |
|
|
2,455 |
|
|
|
2,519 |
|
Pension assets |
|
|
1,187 |
|
|
|
1,197 |
|
Other assets |
|
|
2,374 |
|
|
|
2,543 |
|
Total assets |
|
$ |
31,827 |
|
|
$ |
32,005 |
|
|
|
|
|
|
||||
LIABILITIES |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable (principally trade) |
|
$ |
4,476 |
|
|
$ |
4,260 |
|
Loans payable |
|
|
342 |
|
|
|
280 |
|
Commercial paper |
|
|
609 |
|
|
|
1,496 |
|
Current maturities of long-term debt |
|
|
113 |
|
|
|
118 |
|
Accrued compensation, benefits and retirement costs |
|
|
561 |
|
|
|
1,108 |
|
Current portion of accrued product warranty |
|
|
652 |
|
|
|
667 |
|
Current portion of deferred revenue |
|
|
1,236 |
|
|
|
1,220 |
|
Other accrued expenses |
|
|
3,697 |
|
|
|
3,754 |
|
Total current liabilities |
|
|
11,686 |
|
|
|
12,903 |
|
Long-term liabilities |
|
|
|
|
||||
Long-term debt |
|
|
5,771 |
|
|
|
4,802 |
|
Deferred revenue |
|
|
1,061 |
|
|
|
966 |
|
Other liabilities |
|
|
3,208 |
|
|
|
3,430 |
|
Total liabilities |
|
$ |
21,726 |
|
|
$ |
22,101 |
|
|
|
|
|
|
||||
EQUITY |
|
|
|
|
||||
|
|
|
|
|
||||
Common stock, |
|
$ |
2,557 |
|
|
$ |
2,564 |
|
Retained earnings |
|
|
19,605 |
|
|
|
17,851 |
|
|
|
|
(10,831 |
) |
|
|
(9,359 |
) |
Accumulated other comprehensive loss |
|
|
(2,264 |
) |
|
|
(2,206 |
) |
|
|
|
9,067 |
|
|
|
8,850 |
|
Noncontrolling interests |
|
|
1,034 |
|
|
|
1,054 |
|
Total equity |
|
$ |
10,101 |
|
|
$ |
9,904 |
|
Total liabilities and equity |
|
$ |
31,827 |
|
|
$ |
32,005 |
|
|
|
|
|
|
||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in |
||||||||
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) (a) |
||||||||
|
|
Three months ended |
||||||
|
|
|
||||||
In millions |
|
2024 |
|
2023 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Consolidated net income |
|
$ |
2,028 |
|
|
$ |
806 |
|
Adjustments to reconcile consolidated net income to net cash provided by operating activities |
|
|
|
|
||||
Gain related to divestiture of Atmus |
|
|
(1,333 |
) |
|
|
— |
|
Depreciation and amortization |
|
|
265 |
|
|
|
246 |
|
Deferred income taxes |
|
|
(38 |
) |
|
|
(38 |
) |
Equity in income of investees, net of dividends |
|
|
(78 |
) |
|
|
(67 |
) |
Pension and OPEB expense |
|
|
9 |
|
|
|
1 |
|
Pension contributions and OPEB payments |
|
|
(48 |
) |
|
|
(92 |
) |
Changes in current assets and liabilities, net of acquisitions and divestitures |
|
|
|
|
||||
Accounts and notes receivable |
|
|
(11 |
) |
|
|
(621 |
) |
Inventories |
|
|
(354 |
) |
|
|
(263 |
) |
Other current assets |
|
|
(175 |
) |
|
|
(142 |
) |
Accounts payable |
|
|
327 |
|
|
|
381 |
|
Accrued expenses |
|
|
(393 |
) |
|
|
151 |
|
Other, net |
|
|
77 |
|
|
|
133 |
|
Net cash provided by operating activities |
|
|
276 |
|
|
|
495 |
|
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Capital expenditures |
|
|
(169 |
) |
|
|
(193 |
) |
Acquisition of business, net of cash acquired |
|
|
(59 |
) |
|
|
— |
|
Investments in marketable securities—acquisitions |
|
|
(379 |
) |
|
|
(326 |
) |
Investments in marketable securities—liquidations |
|
|
431 |
|
|
|
345 |
|
Cash associated with Atmus divestiture |
|
|
(174 |
) |
|
|
— |
|
Other, net |
|
|
(56 |
) |
|
|
(54 |
) |
Net cash used in investing activities |
|
|
(406 |
) |
|
|
(228 |
) |
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Proceeds from borrowings |
|
|
2,398 |
|
|
|
43 |
|
Net payments of commercial paper |
|
|
(887 |
) |
|
|
(29 |
) |
Payments on borrowings and finance lease obligations |
|
|
(748 |
) |
|
|
(142 |
) |
Dividend payments on common stock |
|
|
(239 |
) |
|
|
(222 |
) |
Other, net |
|
|
(25 |
) |
|
|
(13 |
) |
Net cash provided by (used in) financing activities |
|
|
499 |
|
|
|
(363 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
(7 |
) |
|
|
(25 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
362 |
|
|
|
(121 |
) |
Cash and cash equivalents at beginning of year |
|
|
2,179 |
|
|
|
2,101 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
2,541 |
|
|
$ |
1,980 |
|
|
|
|
|
|
||||
(a) Prepared on an unaudited basis in accordance with accounting principles generally accepted in |
||||||||
|
|||||||||||||||||||||||||||||||||
SEGMENT INFORMATION |
|||||||||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||||||||
In millions |
|
Components |
|
Engine |
|
Distribution |
|
Power
|
|
Accelera |
|
Total
|
|
Intersegment
|
|
Total |
|||||||||||||||||
Three months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
External sales |
|
$ |
2,842 |
|
|
$ |
2,240 |
|
|
$ |
2,529 |
|
|
$ |
708 |
|
|
$ |
84 |
|
|
$ |
8,403 |
|
|
$ |
— |
|
|
$ |
8,403 |
|
|
Intersegment sales |
|
|
490 |
|
|
|
688 |
|
|
|
6 |
|
|
|
681 |
|
|
|
9 |
|
|
|
1,874 |
|
|
|
(1,874 |
) |
|
|
— |
|
|
Total sales |
|
|
3,332 |
|
|
|
2,928 |
|
|
|
2,535 |
|
|
|
1,389 |
|
|
|
93 |
|
|
|
10,277 |
|
|
|
(1,874 |
) |
|
|
8,403 |
|
|
Research, development and engineering expenses |
|
|
84 |
|
|
|
154 |
|
|
|
14 |
|
|
|
60 |
|
|
|
55 |
|
|
|
367 |
|
|
|
2 |
|
|
|
369 |
|
|
Equity, royalty and interest income (loss) from investees |
|
|
26 |
|
|
|
57 |
|
|
|
24 |
|
|
|
19 |
|
|
|
(3 |
) |
|
|
123 |
|
|
|
— |
|
|
|
123 |
|
|
Interest income |
|
|
8 |
|
|
|
7 |
|
|
|
11 |
|
|
|
3 |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
|
EBITDA (2) |
|
|
473 |
|
(3 |
) |
|
414 |
|
|
|
294 |
|
|
|
237 |
|
|
|
(101 |
) |
|
|
1,317 |
|
|
|
1,255 |
|
|
|
2,572 |
|
Depreciation and amortization (4) |
|
|
125 |
|
|
|
58 |
|
|
|
31 |
|
|
|
34 |
|
|
|
14 |
|
|
|
262 |
|
|
|
— |
|
|
|
262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
EBITDA as a percentage of total sales |
|
|
14.2 |
% |
|
|
14.1 |
% |
|
|
11.6 |
% |
|
|
17.1 |
% |
|
|
NM |
|
|
|
12.8 |
% |
|
|
|
|
30.6 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Three months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
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 |
|
(5 |
) |
|
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 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
"NM" - not meaningful information |
|||||||||||||||||||||||||||||||||
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses. The three months ended |
|||||||||||||||||||||||||||||||||
(2) EBITDA is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and noncontrolling interests. 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. |
|||||||||||||||||||||||||||||||||
(3) Included |
|||||||||||||||||||||||||||||||||
(4) Depreciation and amortization, as shown on a segment basis, excluded 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 |
|||||||||||||||||||||||||||||||||
(5) Included |
|||||||||||||||||||||||||||||||||
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 |
||||
|
|
|
||||
In millions |
|
2024 |
|
2023 |
||
Manufacturing entities |
|
|
|
|
||
|
|
$ |
22 |
|
$ |
19 |
|
|
|
15 |
|
|
9 |
|
|
|
13 |
|
|
16 |
|
|
|
9 |
|
|
8 |
All other manufacturers |
|
|
23 |
|
|
19 |
Distribution entities |
|
|
|
|
||
Komatsu |
|
|
13 |
|
|
14 |
All other distributors |
|
|
5 |
|
|
3 |
|
|
|
100 |
|
|
88 |
Royalty and interest income |
|
|
23 |
|
|
31 |
Equity, royalty and interest income from investees |
|
$ |
123 |
|
$ |
119 |
ATMUS DIVESTITURE
On
We evaluated the full divestiture of Atmus and determined the transaction did not qualify for discontinued operation presentation. We recognized a gain related to the divestiture of approximately
INCOME TAXES
Our effective tax rate for 2024 is expected to approximate 24.0 percent, excluding any discrete items that may arise.
Our effective tax rates for the three months ended
The three months ended
The three months ended
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 impact of the gain recognized and costs associated with the divestiture of Atmus and restructuring actions. This statement excludes forward looking measures of EBITDA where a reconciliation to the corresponding accounting principles generally accepted in
EBITDA is not in accordance with, or an alternative for, 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
|
|
Three months ended |
||||||
|
|
|
||||||
In millions |
|
2024 |
|
2023 |
||||
Net income attributable to |
|
$ |
1,993 |
|
|
$ |
790 |
|
|
|
|
|
|
||||
Net income attributable to |
|
|
23.7 |
% |
|
|
9.3 |
% |
|
|
|
|
|
||||
Add: |
|
|
|
|
||||
Net income attributable to noncontrolling interests |
|
|
35 |
|
|
|
16 |
|
Consolidated net income |
|
|
2,028 |
|
|
|
806 |
|
|
|
|
|
|
||||
Add: |
|
|
|
|
||||
Interest expense |
|
|
89 |
|
|
|
87 |
|
Income tax expense |
|
|
193 |
|
|
|
223 |
|
Depreciation and amortization |
|
|
262 |
|
|
|
245 |
|
EBITDA |
|
$ |
2,572 |
|
|
$ |
1,361 |
|
|
|
|
|
|
||||
EBITDA as a percentage of net sales |
|
|
30.6 |
% |
|
|
16.1 |
% |
|
|
|
|
|
||||
Less: |
|
|
|
|
||||
Gain related to the divestiture of Atmus |
|
|
1,333 |
|
|
|
— |
|
Add: |
|
|
|
|
||||
Atmus divestiture costs |
|
|
35 |
|
|
|
18 |
|
Restructuring actions |
|
|
29 |
|
|
|
— |
|
EBITDA, excluding the impact of gain recognized and costs associated with the divestiture of Atmus and restructuring actions |
|
$ |
1,303 |
|
|
$ |
1,379 |
|
|
|
|
|
|
||||
EBITDA, excluding the impact of gain recognized and costs associated with the divestiture of Atmus and restructuring actions, as a percentage of net sales |
|
|
15.5 |
% |
|
|
16.3 |
% |
Net income and diluted earnings per share (EPS) attributable to
We believe these are useful measures of our operating performance for the periods presented as they illustrate our operating performance without regard to the gain recognized and costs associated with the divestiture of Atmus and restructuring actions. These measures are not in accordance with, or an alternative for GAAP and may not be consistent with measures used by other companies. This should be considered supplemental data. The following table reconciles net income and diluted EPS attributable to
|
|
|
Three months ended |
||||
|
|
|
2024 |
||||
In millions |
|
Net Income |
|
Diluted EPS |
|||
Net income and diluted EPS attributable to |
|
$ |
1,993 |
|
$ |
14.03 |
|
Less: |
|
|
|
|
|
||
Gain recognized and costs associated with the divestiture of Atmus, net of tax |
|
|
1,291 |
|
|
9.08 |
|
Add: |
|
|
|
|
|
||
Restructuring actions, net of tax |
|
|
22 |
|
|
0.15 |
|
Net income and diluted EPS attributable to |
|
$ |
724 |
|
$ |
5.10 |
|
SEGMENT SALES DATA
(Unaudited)
Components Segment Sales by Business
Sales for our Components segment by business were as follows:
2024 |
|
|
|
|
|
|
|
|
|
|
|||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Axles and brakes |
|
$ |
1,232 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,232 |
Emission solutions |
|
|
971 |
|
|
— |
|
|
— |
|
|
— |
|
|
971 |
Engine components |
|
|
544 |
|
|
— |
|
|
— |
|
|
— |
|
|
544 |
Atmus (1) |
|
|
353 |
|
|
— |
|
|
— |
|
|
— |
|
|
353 |
Automated transmissions |
|
|
165 |
|
|
— |
|
|
— |
|
|
— |
|
|
165 |
Software and electronics |
|
|
67 |
|
|
— |
|
|
— |
|
|
— |
|
|
67 |
Total sales |
|
$ |
3,332 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3,332 |
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) Included sales through the |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
2023 |
|
|
|
|
|
|
|
|
|
|
|||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Axles and brakes |
|
$ |
1,272 |
|
$ |
1,249 |
|
$ |
1,177 |
|
$ |
1,124 |
|
$ |
4,822 |
Emission solutions |
|
|
1,056 |
|
|
964 |
|
|
893 |
|
|
922 |
|
|
3,835 |
Engine components |
|
|
581 |
|
|
557 |
|
|
532 |
|
|
519 |
|
|
2,189 |
Atmus |
|
|
417 |
|
|
417 |
|
|
396 |
|
|
399 |
|
|
1,629 |
Automated transmissions |
|
|
179 |
|
|
179 |
|
|
187 |
|
|
169 |
|
|
714 |
Software and electronics |
|
|
52 |
|
|
59 |
|
|
51 |
|
|
58 |
|
|
220 |
Total sales |
|
$ |
3,557 |
|
$ |
3,425 |
|
$ |
3,236 |
|
$ |
3,191 |
|
$ |
13,409 |
Engine Segment Sales by Market and Unit Shipments by Engine Classification
Sales for our Engine segment by market were as follows:
2024 |
|
|
|
|
|
|
|
|
|
|
|||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Heavy-duty truck |
|
$ |
1,059 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,059 |
Medium-duty truck and bus |
|
|
995 |
|
|
— |
|
|
— |
|
|
— |
|
|
995 |
Light-duty automotive |
|
|
438 |
|
|
— |
|
|
— |
|
|
— |
|
|
438 |
Off-highway |
|
|
436 |
|
|
— |
|
|
— |
|
|
— |
|
|
436 |
Total sales |
|
$ |
2,928 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2,928 |
|
|
|
|
|
|
|
|
|
|
|
|||||
2023 |
|
|
|
|
|
|
|
|
|
|
|||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Heavy-duty truck |
|
$ |
1,114 |
|
$ |
1,117 |
|
$ |
1,116 |
|
$ |
1,052 |
|
$ |
4,399 |
Medium-duty truck and bus |
|
|
903 |
|
|
942 |
|
|
931 |
|
|
894 |
|
|
3,670 |
Light-duty automotive |
|
|
439 |
|
|
445 |
|
|
455 |
|
|
423 |
|
|
1,762 |
Off-highway |
|
|
530 |
|
|
484 |
|
|
429 |
|
|
410 |
|
|
1,853 |
Total sales |
|
$ |
2,986 |
|
$ |
2,988 |
|
$ |
2,931 |
|
$ |
2,779 |
|
$ |
11,684 |
Unit shipments by engine classification (including unit shipments to Power Systems and off-highway engine units included in their respective classification) were as follows:
2024 |
|
|
|
|
|
|
|
|
|
|
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
Heavy-duty |
|
33,600 |
|
— |
|
— |
|
— |
|
33,600 |
Medium-duty |
|
75,800 |
|
— |
|
— |
|
— |
|
75,800 |
Light-duty |
|
54,800 |
|
— |
|
— |
|
— |
|
54,800 |
Total units |
|
164,200 |
|
— |
|
— |
|
— |
|
164,200 |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
Heavy-duty |
|
34,700 |
|
36,400 |
|
36,300 |
|
34,500 |
|
141,900 |
Medium-duty |
|
78,900 |
|
76,000 |
|
71,300 |
|
67,900 |
|
294,100 |
Light-duty |
|
55,000 |
|
53,600 |
|
53,300 |
|
49,600 |
|
211,500 |
Total units |
|
168,600 |
|
166,000 |
|
160,900 |
|
152,000 |
|
647,500 |
Distribution Segment Sales by Product Line
Sales for our Distribution segment by product line were as follows:
2024 |
|
|
|
|
|
|
|
|
|
|
|||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Parts |
|
$ |
1,001 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,001 |
Power generation |
|
|
707 |
|
|
— |
|
|
— |
|
|
— |
|
|
707 |
Engines |
|
|
421 |
|
|
— |
|
|
— |
|
|
— |
|
|
421 |
Service |
|
|
406 |
|
|
— |
|
|
— |
|
|
— |
|
|
406 |
Total sales |
|
$ |
2,535 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2,535 |
|
|
|
|
|
|
|
|
|
|
|
|||||
2023 |
|
|
|
|
|
|
|
|
|
|
|||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Parts |
|
$ |
1,057 |
|
$ |
1,019 |
|
$ |
995 |
|
$ |
1,000 |
|
$ |
4,071 |
Power generation |
|
|
492 |
|
|
614 |
|
|
606 |
|
|
797 |
|
|
2,509 |
Engines |
|
|
456 |
|
|
531 |
|
|
511 |
|
|
499 |
|
|
1,997 |
Service |
|
|
401 |
|
|
431 |
|
|
423 |
|
|
417 |
|
|
1,672 |
Total sales |
|
$ |
2,406 |
|
$ |
2,595 |
|
$ |
2,535 |
|
$ |
2,713 |
|
$ |
10,249 |
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:
2024 |
|
|
|
|
|
|
|
|
|
|
|||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Power generation |
|
$ |
853 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
853 |
Industrial |
|
|
420 |
|
|
— |
|
|
— |
|
|
— |
|
|
420 |
Generator technologies |
|
|
116 |
|
|
— |
|
|
— |
|
|
— |
|
|
116 |
Total sales |
|
$ |
1,389 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,389 |
|
|
|
|
|
|
|
|
|
|
|
|||||
2023 |
|
|
|
|
|
|
|
|
|
|
|||||
In millions |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
|||||
Power generation |
|
$ |
770 |
|
$ |
854 |
|
$ |
850 |
|
$ |
866 |
|
$ |
3,340 |
Industrial |
|
|
455 |
|
|
468 |
|
|
475 |
|
|
456 |
|
|
1,854 |
Generator technologies |
|
|
118 |
|
|
135 |
|
|
119 |
|
|
107 |
|
|
479 |
Total sales |
|
$ |
1,343 |
|
$ |
1,457 |
|
$ |
1,444 |
|
$ |
1,429 |
|
$ |
5,673 |
High-horsepower unit shipments by engine classification were as follows:
2024 |
|
|
|
|
|
|
|
|
|
|
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
Power generation |
|
3,000 |
|
— |
|
— |
|
— |
|
3,000 |
Industrial |
|
1,300 |
|
— |
|
— |
|
— |
|
1,300 |
Total units |
|
4,300 |
|
— |
|
— |
|
— |
|
4,300 |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Units |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
Power generation |
|
2,900 |
|
3,300 |
|
2,800 |
|
3,300 |
|
12,300 |
Industrial |
|
1,500 |
|
1,600 |
|
1,800 |
|
1,800 |
|
6,700 |
Total units |
|
4,400 |
|
4,900 |
|
4,600 |
|
5,100 |
|
19,000 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501092828/en/
Director,
jon.mills@cummins.com
Source: