Cummins Reports Strong Fourth Quarter and Full Year 2022 Results

  • Fourth quarter revenues of $7.8 billion; GAAP1 Net Income of $631 million
  • EBITDA in the fourth quarter was 14.2 percent of sales; Diluted EPS of $4.43
  • Fourth quarter results reflect:
    • $52 million, or $0.36 per diluted share, of favorable discrete tax items.
    • $27 million, or $0.15 per diluted share, of costs related to the integration of Meritor.
    • $19 million, or $0.11 per diluted share, of costs related to the separation of the Filtration business.
  • Excluding the Meritor business and related integration costs and Filtration separation costs, EBITDA in the fourth quarter was 16.1 percent of sales, exceeding our guidance
  • Full year revenues of $28.1 billion; GAAP1 Net Income of $2.2 billion
  • EBITDA for the full year was 13.5 percent of sales; Diluted EPS of $15.12
  • The company expects full year 2023 revenues to be up 12 to 17 percent, EBITDA expected to be in the range of 14.5 to 15.2 percent.

COLUMBUS, Ind.--()--Cummins Inc. (NYSE: CMI) today reported fourth quarter and full year 2022 results.

Revenues for the fourth quarter were $7.8 billion. Excluding Meritor, Inc., the acquisition of which was completed on August 3, 2022, revenues were $6.6 billion, 13 percent higher than the same quarter in 2021. Excluding Meritor, sales in North America increased 25 percent and international revenues decreased 1 percent compared to fourth quarter 2021, as strong demand across all global markets were offset by a market slowdown in China, as well as Russia, where operations have been suspended indefinitely.

Net income attributable to Cummins in the fourth quarter was $631 million, or $4.43 per diluted share. The tax rate in the fourth quarter was 17.2 percent including $52 million, or $0.36 per diluted share, of favorable discrete tax items. Excluding the Meritor business and related integration costs, net income for the quarter was $644 million, or $4.52 per diluted share, compared to $394 million, or $2.73 per diluted share, in 2021. Fourth quarter results also include $0.11 per diluted share of costs related to the separation of the Filtration business.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter was $1.1 billion, or 14.2 percent of sales. Excluding the Meritor business and related integration costs, as well as $19 million of costs related to the separation of the Filtration business, EBITDA was 16.1 percent of sales, compared to 12.1 percent of sales a year ago.

Fourth quarter results for the company included a full three months of Meritor. Meritor results within the quarter include $1.2 billion in revenue and EBITDA of $60 million. Fourth quarter results also include $27 million of integration related costs. EBITDA for Meritor operations, excluding the integration costs, was $87 million in the quarter, or 7.5 percent of sales.

“In 2022, Cummins continued to advance its Destination Zero growth strategy through the acquisitions of Jacobs Vehicles Systems, Meritor and the Siemens Commercial Vehicles business. The innovative talent, technology and capabilities these acquisitions bring will position Cummins for success as the industry decarbonizes,” said President and CEO Jennifer Rumsey. “We delivered strong profitability in the fourth quarter and achieved record full year revenues, EBITDA and EPS last year. I want to thank all our employees for helping us navigate a difficult supply chain environment and making 2022 a successful year.”

Revenues for the full year were $28.1 billion. Excluding Meritor, revenues were $26.2 billion, 9 percent higher than 2021. Sales in North America increased 18 percent and international revenues decreased 2 percent compared to 2021, as strong demand across all global markets was partially offset by a market slowdown in China, as well as Russia, where operations have been suspended indefinitely.

Net income attributable to Cummins for the full year was $2.2 billion, or $15.12 per diluted share. The tax rate in 2022 was 22.6 percent with a net zero impact from discrete tax items. Excluding the Meritor business and related acquisition costs, integration costs and purchase accounting impacts, net income for 2022 was $15.67 per diluted share, compared to $14.61 per diluted share in 2021. Full year results also include $0.72 per diluted share of costs related to the indefinite suspension of operations in Russia and $0.45 per diluted share for the separation of the Filtration business.

EBITDA in 2022 was $3.8 billion, or 13.5 percent of sales. Excluding the Meritor business and related acquisition costs, integration costs and purchase accounting impacts, as well as $111 million of costs related to the Russia suspension of operations and $81 million of costs for the separation of the Filtration business, EBITDA was $4.0 billion, or 15.1 percent of sales, compared to $3.5 billion, or 14.7 percent of sales, a year ago.

Full year results for the company included five months of operations following the acquisition of Meritor. Meritor results within 2022 include $1.9 billion in revenue and EBITDA of $26 million. Results of Meritor include an inventory valuation adjustment as required by purchase accounting, which resulted in a negative impact of $32 million. 2022 results also include $83 million of acquisition and integration related costs, which consist of consulting and banker fees, and employee separation and retention payments. EBITDA for Meritor operations, excluding the purchase accounting and acquisition and integration costs, was $141 million in the year, or 7.4 percent of sales.

2023 Outlook:

Based on its current forecast, Cummins projects full year 2023 revenues to be up 12 to 17 percent, and EBITDA to be in the 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 $4.5 billion to $4.7 billion, and EBITDA to be in the range of 10.3 to 11.0 percent of sales. The electric powertrain portion of the Meritor business has been integrated within the New Power portfolio with projected EBITDA losses of $55 million included in the overall guidance for that segment.

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 dividends and reducing the debt related to the Meritor acquisition, while continuing to deliver profitable growth to our shareholders.

“In 2023, we anticipate that demand will remain strong in most of our key regions and markets, especially in the first half of the year. We will continue monitoring global economic indicators closely and ensure we are prepared should economic momentum slow further,” said Rumsey. “We expect revenue growth and margin expansion in our core business and strong growth in our New Power segment in 2023.”

2022 Highlights:

  • Cummins completed the acquisition of Jacobs Vehicle Systems (JVS), a supplier of engine braking, cylinder deactivation, start and stop and thermal management technologies which are key components to meeting current and future emissions regulations.
  • Cummins completed the acquisition of Meritor, Inc., a leading global supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. The integration of Meritor’s people, products and capabilities in axle and brake technology will position Cummins as a leading provider of integrated powertrain solutions across internal combustion and electric power applications.
  • Cummins completed the acquisition of Siemens Commercial Vehicles business, a leading global supplier of high-performance electric drive systems for commercial vehicles.
  • Cummins hosted its biennial analyst day highlighting its long-term decarbonization growth strategy, Destination Zero, which includes making meaningful reductions in carbon emissions through advanced internal combustion technologies widely accepted by the market today, while continuing to invest in and advance zero emission technologies ahead of widespread market adoption.
  • Cummins unveiled the industry’s first unified, fuel-agnostic internal combustion powertrain platforms. This technology approach will be applied across Cummins’ X-Series, L-Series and B-Series product platforms, and helps fleets reduce carbon emissions today by enabling vehicles to run on low to zero carbon fuels. The platform utilizes the internal combustion engine technology that fleets are already familiar with while also applying a high level of parts and integration commonality across fuels including diesel, natural gas, hydrogen and other fuel applications.
  • The New Power business continued to expand its green hydrogen presence globally. Capacity expansion for electrolyzers was a major focal point in 2022 as Cummins announced it will begin producing electrolyzers in Fridley, Minnesota, announced electrolyzer manufacturing capacity expansion in Oevel, Belgium, and began construction on the electrolyzer facility in Guadalajara, Castilla-La Mancha, Spain. In addition to capacity expansion, the company continued to gain momentum in the market with key customers and partners, including Linde, Atura Power, and Florida Power and Light.
  • Cummins received several prestigious honors during the year including being named to the S&P Dow Jones Sustainability World Indices for a second year in a row, named to Barron’s list of America’s 100 Most Sustainable Companies, ranked No. 4 on Forbes’ list of The Best Employers for Diversity, and included among the honorees on Ethisphere’s World’s Most Ethical Companies list. Also, Cummins’ ESG Rating from Morgan Stanley Capital International (MSCI) was upgraded from AA to AAA, the highest rating possible, as well as named to Investor’s Business Daily’s fourth annual 100 Best ESG Companies list.
  • On August 1st, Jennifer Rumsey assumed the role of Chief Executive Officer becoming the seventh CEO, and first female, in the company’s history. Tom Linebarger, Cummins long-standing CEO, assumed the role of Executive Chairman.
  • Progress continues to be made on the planned separation of the Filtration business.
  • The company increased its cash dividend for the 13th straight year and returned a total of $1.2 billion to shareholders in the form of dividends and share repurchases.

1 Generally Accepted Accounting Principles in the U.S.

Fourth quarter 2022 detail (all comparisons to same period in 2021):

Engine Segment

  • Sales - $2.6 billion, up 9 percent
  • Segment EBITDA - $364 million, or 13.8 percent of sales, compared to $264 million or 10.9 percent of sales
  • On-highway revenues increased 11 percent driven by strong demand in the North American truck market, pricing actions and strong aftermarket demand. Off-highway revenues decreased 1 percent driven by a slowdown in China construction.
  • Sales increased 21 percent in North America and decreased 16 percent in international markets due to a decline in China demand and the indefinite suspension of operations in Russia.

Distribution Segment

  • Sales - $2.3 billion, up 13 percent
  • Segment EBITDA - $256 million, or 11.0 percent of sales, compared to $178 million, or 8.6 percent of sales
  • 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.

Components Segment

  • Sales - $3.1 billion; excluding Meritor, $1.9 billion, up 13 percent
  • Segment EBITDA - $377 million, or 12.2 percent of sales; excluding Meritor and costs for the Filtration separation, $314 million or 16.1 percent of sales, compared to $205 million, or 11.9 percent of sales
  • Excluding Meritor, revenues in North America increased by 23 percent and international sales increased by 1 percent due to strong demand in India offset by lower demand in China.

Power Systems Segment

  • Sales - $1.3 billion, up 22 percent
  • Segment EBITDA - $185 million, or 14.0 percent of sales, compared to $97 million, or 8.9 percent of sales
  • Power generation revenues increased 25 percent driven by pricing actions and increased global demand. Industrial revenues increased 17 percent due to strong demand for aftermarket products and increased demand in mining and oil and gas markets.

New Power Segment

  • Sales - $75 million; excluding Meritor, $61 million, up 79 percent
  • Segment EBITDA loss - $97 million; excluding Meritor operating results, $81 million
  • Revenues increased due to higher battery demand in the North American school bus market and higher electrolyzer sales.
  • Costs associated with the development of 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; any adverse effects of the U.S. government's COVID-19 vaccine mandates; changes in taxation; global legal and ethical compliance costs and risks; increasingly stringent environmental laws and regulations; future bans or limitations on the use of diesel-powered products; any adverse effects of the conflict between Russia and Ukraine and the global response (including government bans or restrictions on doing business in Russia); failure to successfully integrate the acquisition of Meritor, Inc.; failure to realize all of the anticipated benefits from our acquisition of Meritor, Inc.; raw material, transportation and labor price fluctuations and supply shortages; 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, bankruptcy 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; challenging markets for talent and ability to attract, develop and retain key personnel; climate change and global warming; 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; 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 2021 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 December 31,

In millions, except per share amounts

 

 

2022

 

 

2021

NET SALES

 

$

7,770

 

$

5,850

Cost of sales

 

 

5,951

 

 

4,533

GROSS MARGIN

 

 

1,819

 

 

1,317

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

 

742

 

 

629

Research, development and engineering expenses

 

 

333

 

 

288

Equity, royalty and interest income from investees

 

 

88

 

 

109

Other operating expense, net

 

 

30

 

 

14

OPERATING INCOME

 

 

802

 

 

495

Interest expense

 

 

87

 

 

26

Other income, net

 

 

63

 

 

45

INCOME BEFORE INCOME TAXES

 

 

778

 

 

514

Income tax expense

 

 

134

 

 

114

CONSOLIDATED NET INCOME

 

 

644

 

 

400

Less: Net income attributable to noncontrolling interests

 

 

13

 

 

6

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

631

 

$

394

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

4.47

 

$

2.76

Diluted

 

$

4.43

 

$

2.73

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

 

141.3

 

 

142.9

Diluted

 

 

142.3

 

 

144.1

 

 

 

 

 

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

 

 

Years ended December 31,

In millions, except per share amounts

 

 

2022

 

 

2021

NET SALES

 

$

28,074

 

$

24,021

Cost of sales

 

 

21,355

 

 

18,326

GROSS MARGIN

 

 

6,719

 

 

5,695

OPERATING EXPENSES AND INCOME

 

 

 

 

Selling, general and administrative expenses

 

 

2,687

 

 

2,374

Research, development and engineering expenses

 

 

1,278

 

 

1,090

Equity, royalty and interest income from investees

 

 

349

 

 

506

Other operating expense, net

 

 

174

 

 

31

OPERATING INCOME

 

 

2,929

 

 

2,706

Interest expense

 

 

199

 

 

111

Other income, net

 

 

89

 

 

156

INCOME BEFORE INCOME TAXES

 

 

2,819

 

 

2,751

Income tax expense

 

 

636

 

 

587

CONSOLIDATED NET INCOME

 

 

2,183

 

 

2,164

Less: Net income attributable to noncontrolling interests

 

 

32

 

 

33

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

2,151

 

$

2,131

 

 

 

 

 

EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CUMMINS INC.

 

 

 

 

Basic

 

$

15.20

 

$

14.74

Diluted

 

$

15.12

 

$

14.61

 

 

 

 

 

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

Basic

 

 

141.5

 

 

144.6

Diluted

 

 

142.3

 

 

145.9

 

 

 

 

 

(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

 

December 31,
2022

 

December 31,
2021

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

2,101

 

 

$

2,592

 

Marketable securities

 

 

472

 

 

 

595

 

Total cash, cash equivalents and marketable securities

 

 

2,573

 

 

 

3,187

 

Accounts and notes receivable, net

 

 

5,202

 

 

 

3,990

 

Inventories

 

 

5,603

 

 

 

4,355

 

Prepaid expenses and other current assets

 

 

1,073

 

 

 

777

 

Total current assets

 

 

14,451

 

 

 

12,309

 

Long-term assets

 

 

 

 

Property, plant and equipment, net

 

 

5,521

 

 

 

4,422

 

Investments and advances related to equity method investees

 

 

1,759

 

 

 

1,538

 

Goodwill

 

 

2,343

 

 

 

1,287

 

Other intangible assets, net

 

 

2,687

 

 

 

900

 

Pension assets

 

 

1,398

 

 

 

1,488

 

Other assets

 

 

2,140

 

 

 

1,766

 

Total assets

 

$

30,299

 

 

$

23,710

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable (principally trade)

 

$

4,252

 

 

$

3,021

 

Loans payable

 

 

210

 

 

 

208

 

Commercial paper

 

 

2,574

 

 

 

313

 

Current maturities of long-term debt

 

 

573

 

 

 

59

 

Accrued compensation, benefits and retirement costs

 

 

617

 

 

 

683

 

Current portion of accrued product warranty

 

 

726

 

 

 

755

 

Current portion of deferred revenue

 

 

1,004

 

 

 

855

 

Other accrued expenses

 

 

1,465

 

 

 

1,190

 

Total current liabilities

 

 

11,421

 

 

 

7,084

 

Long-term liabilities

 

 

 

 

Long-term debt

 

 

4,498

 

 

 

3,579

 

Deferred revenue

 

 

844

 

 

 

850

 

Other liabilities

 

 

3,311

 

 

 

2,796

 

Total liabilities

 

$

20,074

 

 

$

14,309

 

 

 

 

 

 

Redeemable noncontrolling interests

 

$

258

 

 

$

366

 

 

 

 

 

 

EQUITY

 

 

 

 

Cummins Inc. shareholders’ equity

 

 

 

 

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

 

$

2,243

 

 

$

2,099

 

Retained earnings

 

 

18,037

 

 

 

16,741

 

Treasury stock, at cost, 81.2 and 80.0 shares

 

 

(9,415

)

 

 

(9,123

)

Accumulated other comprehensive loss

 

 

(1,890

)

 

 

(1,571

)

Total Cummins Inc. shareholders’ equity

 

 

8,975

 

 

 

8,146

 

Noncontrolling interests

 

 

992

 

 

 

889

 

Total equity

 

$

9,967

 

 

$

9,035

 

Total liabilities, redeemable noncontrolling interests and equity

 

$

30,299

 

 

$

23,710

 

 

 

 

 

 

(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 December 31,

In millions

 

 

2022

 

 

 

2021

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

$

817

 

 

$

732

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

 

(463

)

 

 

(372

)

Acquisitions of businesses, net of cash acquired

 

 

(183

)

 

 

 

Investments in marketable securities—acquisitions

 

 

(335

)

 

 

(237

)

Investments in marketable securities—liquidations

 

 

332

 

 

 

71

 

Other, net

 

 

(27

)

 

 

(57

)

Net cash used in investing activities

 

 

(676

)

 

 

(595

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from borrowings

 

 

27

 

 

 

44

 

Net borrowings of commercial paper

 

 

181

 

 

 

113

 

Payments on borrowings and finance lease obligations

 

 

(480

)

 

 

(16

)

Dividend payments on common stock

 

 

(222

)

 

 

(208

)

Repurchases of common stock

 

 

(4

)

 

 

(174

)

Other, net

 

 

56

 

 

 

93

 

Net cash used in financing activities

 

 

(442

)

 

 

(148

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 

(97

)

 

 

15

 

Net (decrease) increase in cash and cash equivalents

 

 

(398

)

 

 

4

 

Cash and cash equivalents at beginning of period

 

 

2,499

 

 

 

2,588

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

2,101

 

 

$

2,592

 

 

 

 

 

 

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

 

 

 

Years ended December 31,

In millions

 

 

2022

 

 

 

2021

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

$

1,962

 

 

$

2,256

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

 

 

(916

)

 

 

(734

)

Acquisitions of businesses, net of cash acquired

 

 

(3,191

)

 

 

 

Investments in marketable securities—acquisitions

 

 

(1,073

)

 

 

(806

)

Investments in marketable securities—liquidations

 

 

1,151

 

 

 

673

 

Other, net

 

 

(143

)

 

 

(6

)

Net cash used in investing activities

 

 

(4,172

)

 

 

(873

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from borrowings

 

 

2,103

 

 

 

79

 

Net borrowings (payments) of commercial paper

 

 

2,261

 

 

 

(10

)

Payments on borrowings and finance lease obligations

 

 

(1,550

)

 

 

(73

)

Dividend payments on common stock

 

 

(855

)

 

 

(809

)

Repurchases of common stock

 

 

(374

)

 

 

(1,402

)

Other, net

 

 

84

 

 

 

(12

)

Net cash provided by (used in) financing activities

 

 

1,669

 

 

 

(2,227

)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 

50

 

 

 

35

 

Net decrease in cash and cash equivalents

 

 

(491

)

 

 

(809

)

Cash and cash equivalents at beginning of year

 

 

2,592

 

 

 

3,401

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

2,101

 

 

$

2,592

 

 

 

 

 

 

(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

 

Engine

 

Components

 

Distribution

 

Power Systems

 

New Power

 

Total Segments

 

Intersegment Eliminations (1)

 

Total

Three months ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

1,995

 

 

$

2,633

 

 

$

2,311

 

 

$

761

 

 

$

70

 

 

$

7,770

 

 

$

 

 

$

7,770

 

Intersegment sales

 

 

643

 

 

 

462

 

 

 

9

 

 

 

560

 

 

 

5

 

 

 

1,679

 

 

 

(1,679

)

 

 

 

Total sales

 

 

2,638

 

 

 

3,095

 

 

 

2,320

 

 

 

1,321

 

 

 

75

 

 

 

9,449

 

 

 

(1,679

)

 

 

7,770

 

Research, development and engineering expenses

 

 

141

 

 

 

73

 

 

 

13

 

 

 

56

 

 

 

50

 

 

 

333

 

 

 

 

 

 

333

 

Equity, royalty and interest income (loss) from investees

 

 

35

 

 

 

17

 

 

 

20

 

 

 

12

 

 

 

4

 

 

 

88

 

 

 

 

 

 

88

 

Interest income

 

 

6

 

 

 

5

 

 

 

7

 

 

 

2

 

 

 

 

 

 

20

 

 

 

 

 

 

20

 

Russian suspension recoveries

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

EBITDA (2)

 

 

364

 

 

 

377

 

(3

)

 

256

 

 

 

185

 

 

 

(97

)

 

 

1,085

 

 

 

20

 

 

 

1,105

 

Depreciation and amortization (4)

 

 

54

 

 

 

117

 

 

 

28

 

 

 

28

 

 

 

13

 

 

 

240

 

 

 

 

 

 

240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of segment sales

 

 

13.8

%

 

 

12.2

%

 

 

11.0

%

 

 

14.0

%

 

 

NM

 

 

 

11.5

%

 

 

 

 

14.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

1,813

 

 

$

1,305

 

 

$

2,050

 

 

$

651

 

 

$

31

 

 

$

5,850

 

 

$

 

 

$

5,850

 

Intersegment sales

 

 

613

 

 

 

421

 

 

 

8

 

 

 

435

 

 

 

3

 

 

 

1,480

 

 

 

(1,480

)

 

 

 

Total sales

 

 

2,426

 

 

 

1,726

 

 

 

2,058

 

 

 

1,086

 

 

 

34

 

 

 

7,330

 

 

 

(1,480

)

 

 

5,850

 

Research, development and engineering expenses

 

 

111

 

 

 

75

 

 

 

13

 

 

 

62

 

 

 

27

 

 

 

288

 

 

 

 

 

 

288

 

Equity, royalty and interest income (loss) from investees

 

 

62

 

 

 

9

 

 

 

16

 

 

 

24

 

 

 

(2

)

 

 

109

 

 

 

 

 

 

109

 

Interest income

 

 

1

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

 

 

 

7

 

 

 

 

 

 

7

 

EBITDA (2)

 

 

264

 

 

 

205

 

 

 

178

 

 

 

97

 

 

 

(54

)

 

 

690

 

 

 

15

 

 

 

705

 

Depreciation and amortization (4)

 

 

51

 

 

 

45

 

 

 

28

 

 

 

34

 

 

 

7

 

 

 

165

 

 

 

 

 

 

165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of segment sales

 

 

10.9

%

 

 

11.9

%

 

 

8.6

%

 

 

8.9

%

 

 

NM

 

 

 

9.4

%

 

 

 

 

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 December 31, 2022 and December 31, 2021, except for $6 million of filtration separation costs in 2022.

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

(3) Includes $27 million of costs related to the acquisition and integration of Meritor and $13 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. A portion of depreciation expense is included in research, development and engineering expenses.

In millions

 

Engine

 

Components

 

Distribution

 

Power Systems

 

New Power

 

Total Segments

 

Intersegment Eliminations (1)

 

Total

Year ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

8,199

 

 

$

7,847

 

 

$

8,901

 

 

$

2,951

 

 

$

176

 

 

$

28,074

 

 

$

 

 

$

28,074

 

Intersegment sales

 

 

2,746

 

 

 

1,889

 

 

 

28

 

 

 

2,082

 

 

 

22

 

 

 

6,767

 

 

 

(6,767

)

 

 

 

Total sales

 

 

10,945

 

 

 

9,736

 

 

 

8,929

 

 

 

5,033

 

 

 

198

 

 

 

34,841

 

 

 

(6,767

)

 

 

28,074

 

Research, development and engineering expenses

 

 

506

 

 

 

309

 

 

 

52

 

 

 

240

 

 

 

171

 

 

 

1,278

 

 

 

 

 

 

1,278

 

Equity, royalty and interest income (loss) from investees

 

 

166

 

(2

)

 

71

 

 

 

77

 

 

 

43

 

 

 

(8

)

 

 

349

 

 

 

 

 

 

349

 

Interest income

 

 

14

 

 

 

12

 

 

 

16

 

 

 

7

 

 

 

 

 

 

49

 

 

 

 

 

 

49

 

Russian suspension costs

 

 

33

 

(3

)

 

5

 

 

 

54

 

 

 

19

 

 

 

 

 

 

111

 

 

 

 

 

 

111

 

EBITDA (4)

 

 

1,541

 

 

 

1,346

 

(5

)

 

888

 

 

 

596

 

 

 

(340

)

 

 

4,031

 

 

 

(232

)

 

 

3,799

 

Depreciation and amortization (6)

 

 

205

 

 

 

304

 

 

 

114

 

 

 

120

 

 

 

38

 

 

 

781

 

 

 

 

 

 

781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

14.1

%

 

 

13.8

%

 

 

9.9

%

 

 

11.8

%

 

 

NM

 

 

 

11.6

%

 

 

 

 

13.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External sales

 

$

7,589

 

 

$

5,932

 

 

$

7,742

 

 

$

2,650

 

 

$

108

 

 

$

24,021

 

 

$

 

 

$

24,021

 

Intersegment sales

 

 

2,365

 

 

 

1,733

 

 

 

30

 

 

 

1,765

 

 

 

8

 

 

 

5,901

 

 

 

(5,901

)

 

 

 

Total sales

 

 

9,954

 

 

 

7,665

 

 

 

7,772

 

 

 

4,415

 

 

 

116

 

 

 

29,922

 

 

 

(5,901

)

 

 

24,021

 

Research, development and engineering expenses

 

 

399

 

 

 

307

 

 

 

48

 

 

 

234

 

 

 

102

 

 

 

1,090

 

 

 

 

 

 

1,090

 

Equity, royalty and interest income (loss) from investees

 

 

340

 

 

 

50

 

 

 

63

 

 

 

56

 

 

 

(3

)

 

 

506

 

 

 

 

 

 

506

 

Interest income

 

 

8

 

 

 

5

 

 

 

7

 

 

 

5

 

 

 

 

 

 

25

 

 

 

 

 

 

25

 

EBITDA (4)

 

 

1,411

 

 

 

1,180

 

 

 

731

 

 

 

496

 

 

 

(223

)

 

 

3,595

 

 

 

(74

)

 

 

3,521

 

Depreciation and amortization (6)

 

 

205

 

 

 

183

 

 

 

116

 

 

 

131

 

 

 

24

 

 

 

659

 

 

 

 

 

 

659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of total sales

 

 

14.2

%

 

 

15.4

%

 

 

9.4

%

 

 

11.2

%

 

 

NM

 

 

 

12.0

%

 

 

 

 

14.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"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 years ended December 31, 2022 and 2021, except for $53 million of filtration separation costs in 2022.

(2) 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.

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

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

(5) Includes $83 million of costs related to the acquisition and integration of Meritor and $28 million of costs associated with the planned separation of our filtration business.

(6) 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 $3 million and $3 million for the years ended December 31, 2022 and 2021, respectively. A portion of depreciation expense is included in research, development and engineering expenses.

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 December 31,

 

Years ended December 31,

In millions

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

EBITDA

 

$

1,105

 

 

$

705

 

 

$

3,799

 

 

$

3,521

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of net sales

 

 

14.2

%

 

 

12.1

%

 

 

13.5

%

 

 

14.7

%

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

Interest expense

 

 

87

 

 

 

26

 

 

 

199

 

 

 

111

 

Depreciation and amortization

 

 

240

 

 

 

165

 

 

 

781

 

 

 

659

 

INCOME BEFORE INCOME TAXES

 

 

778

 

 

 

514

 

 

 

2,819

 

 

 

2,751

 

Less: Income tax expense

 

 

134

 

 

 

114

 

 

 

636

 

 

 

587

 

CONSOLIDATED NET INCOME

 

 

644

 

 

 

400

 

 

 

2,183

 

 

 

2,164

 

Less: Net income attributable to noncontrolling interests

 

 

13

 

 

 

6

 

 

 

32

 

 

 

33

 

NET INCOME ATTRIBUTABLE TO CUMMINS INC.

 

$

631

 

 

$

394

 

 

$

2,151

 

 

$

2,131

 

 

 

 

 

 

 

 

 

 

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

 

 

8.1

%

 

 

6.7

%

 

 

7.7

%

 

 

8.9

%

 

 

 

 

 

 

 

 

 

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 December 31,

 

Years ended December 31,

In millions

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Manufacturing entities

 

 

 

 

 

 

 

 

Dongfeng Cummins Engine Company, Ltd.

 

$

10

 

$

19

 

$

45

 

$

82

Chongqing Cummins Engine Company, Ltd.

 

 

9

 

 

11

 

 

32

 

 

39

Tata Cummins, Ltd.

 

 

8

 

 

5

 

 

27

 

 

18

Beijing Foton Cummins Engine Co., Ltd.

 

 

3

 

 

4

 

 

37

 

 

112

All other manufacturers

 

 

14

 

 

27

 

 

28

(1

)

 

131

Distribution entities

 

 

 

 

 

 

 

 

Komatsu Cummins Chile, Ltda.

 

 

12

 

 

9

 

 

44

 

 

32

All other distributors

 

 

3

 

 

4

 

 

11

 

 

10

Cummins share of net income

 

 

59

 

 

79

 

 

224

 

 

424

Royalty and interest income

 

 

29

 

 

30

 

 

125

 

 

82

Equity, royalty and interest income from investees

 

$

88

 

$

109

 

$

349

 

$

506

 

 

 

 

 

 

 

 

 

(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. In addition, on February 7, 2022, we purchased Westport Fuel System Inc.'s stake in Cummins Westport, Inc..

ACQUISITION

On November 30, 2022, we acquired Siemens' Commercial Vehicles Propulsion business for approximately $187 million, subject to working capital and other customary adjustments. This business develops, designs and produces electric drive systems including electric motors, inverters, software and related services for the transit, off-highway and specialty markets. This acquisition is included in our New Power segment.

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 December 31, 2022, was 17.2 percent and contained favorable net discrete tax items of $52 million, or $0.36 per share, primarily due to $31 million of favorable changes in accrued withholding taxes, $15 million of favorable valuation allowance adjustments and $6 million of favorable other net discrete items.

Our effective tax rate for the year ended December 31, 2022, was 22.6 percent and discrete tax items netted to zero, primarily due to $31 million of favorable changes in accrued withholding taxes, $29 million of favorable changes in tax reserves, $15 million of favorable valuation allowance adjustments and $9 million of favorable other net discrete items, offset by $69 million of unfavorable tax costs associated with internal restructuring ahead of the planned separation of our filtration business and $15 million of unfavorable return to provision adjustments related to the 2021 filed tax returns.

Our effective tax rate for the three months ended December 31, 2021, was 22.2 percent and contained unfavorable discrete items of $17 million, or $0.12 per share, primarily due to $11 million of unfavorable changes in U.S. research and development tax reserve and $6 million of net unfavorable other discrete tax items.

Our effective tax rate for the year ended December 31, 2021, was 21.3 percent and contained unfavorable discrete items of $9 million, or $0.06 per share, primarily due to $12 million of unfavorable provision to return adjustments related to the 2020 filed tax returns, partially offset by $3 million of favorable 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 Meritor business and related acquisition and integration costs, filtration separation costs 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 December 31,

 

Years ended December 31,

In millions

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income attributable to Cummins Inc.

 

$

631

 

 

$

394

 

 

$

2,151

 

 

$

2,131

 

 

 

 

 

 

 

 

 

 

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

 

 

8.1

%

 

 

6.7

%

 

 

7.7

%

 

 

8.9

%

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

 

13

 

 

 

6

 

 

 

32

 

 

 

33

 

Consolidated net income

 

 

644

 

 

 

400

 

 

 

2,183

 

 

 

2,164

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

Interest expense

 

 

87

 

 

 

26

 

 

 

199

 

 

 

111

 

Income tax expense

 

 

134

 

 

 

114

 

 

 

636

 

 

 

587

 

Depreciation and amortization

 

 

240

 

 

 

165

 

 

 

781

 

 

 

659

 

EBITDA

 

$

1,105

 

 

$

705

 

 

$

3,799

 

 

$

3,521

 

 

 

 

 

 

 

 

 

 

EBITDA as a percentage of net sales

 

 

14.2

%

 

 

12.1

%

 

 

13.5

%

 

 

14.7

%

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

Meritor results

 

 

60

 

 

 

 

 

 

26

 

 

 

 

Filtration separation costs

 

 

(19

)

 

 

 

 

 

(81

)

 

 

 

Russian suspension costs

 

 

 

 

 

 

 

 

(111

)

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, excluding impact of Meritor business and related acquisition and integration costs, filtration separation costs and indefinite suspension of Russian operations

 

$

1,064

 

 

$

705

 

 

$

3,965

 

 

$

3,521

 

 

 

 

 

 

 

 

 

 

EBITDA, excluding impact of Meritor business and related acquisition and integration costs, filtration separation costs and indefinite suspension of Russian operations, as a percentage of net sales excluding Meritor

 

 

16.1

%

 

 

12.1

%

 

 

15.1

%

 

 

14.7

%

Net income and diluted earnings per share (EPS) attributable to Cummins Inc. excluding Meritor

We believe these are useful measures of our operating performance for the periods presented as they illustrate our operating performance without regard to the Meritor acquisition and related acquisition and integration costs and purchase price accounting adjustments. 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 Cummins Inc. to net income and diluted EPS attributable to Cummins Inc. excluding special items for the following periods:

 

 

Three months ended December 31,

 

 

2022

 

 

2021

In millions, except per share amounts

 

Net Income

 

Diluted EPS

 

Net Income

 

Diluted EPS

Net income and diluted EPS attributable to Cummins Inc.

 

$

631

 

 

$

4.43

 

 

$

394

 

$

2.73

Less

 

 

 

 

 

 

 

 

Meritor business including related acquisition and integration costs and purchase accounting impacts

 

 

(13

)

 

 

(0.09

)

 

 

 

 

Net income and diluted EPS attributable to Cummins Inc. excluding Meritor

 

$

644

 

 

$

4.52

 

 

$

394

 

$

2.73

 

 

 

Years ended December 31,

 

 

2022

 

 

2021

In millions, except for share amounts

 

Net Income

 

Diluted EPS

 

Net Income

 

Diluted EPS

Net income and diluted EPS attributable to Cummins Inc.

 

$

2,151

 

 

$

15.12

 

 

$

2,131

 

$

14.61

Less

 

 

 

 

 

 

 

 

Meritor business including related acquisition and integration costs and purchase accounting impacts

 

 

(79

)

 

 

(0.55

)

 

 

 

 

Net income and diluted EPS attributable to Cummins Inc. excluding Meritor

 

$

2,230

 

 

$

15.67

 

 

$

2,131

 

$

14.61

CUMMINS INC. AND SUBSIDIARIES
SEGMENT SALES DATA
(Unaudited)

Engine Segment Sales by Market and Unit Shipments by Engine Classification

Sales for our Engine segment by market were as follows:

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

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty truck

 

$

827

 

$

839

 

$

861

 

$

801

 

$

3,328

Medium-duty truck and bus

 

 

674

 

 

688

 

 

713

 

 

702

 

 

2,777

Light-duty automotive

 

 

481

 

 

484

 

 

515

 

 

432

 

 

1,912

Off-highway

 

 

477

 

 

480

 

 

489

 

 

491

 

 

1,937

Total sales

 

$

2,459

 

$

2,491

 

$

2,578

 

$

2,426

 

$

9,954

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

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

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Heavy-duty

 

30,700

 

29,400

 

29,200

 

28,300

 

117,600

Medium-duty

 

73,100

 

67,500

 

65,200

 

68,000

 

273,800

Light-duty

 

68,500

 

68,100

 

73,900

 

62,800

 

273,300

Total units

 

172,300

 

165,000

 

168,300

 

159,100

 

664,700

Component Segment Sales by Business

Sales for our Components segment by business were as follows:

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Emission solutions

 

$

910

 

$

863

 

$

853

 

$

868

 

$

3,494

Filtration

 

 

382

 

 

391

 

 

399

 

 

385

 

 

1,557

Turbo technologies

 

 

346

 

 

355

 

 

367

 

 

353

 

 

1,421

Electronics and fuel systems

 

 

216

 

 

198

 

 

193

 

 

185

 

 

792

Automated transmissions

 

 

134

 

 

143

 

 

159

 

 

157

 

 

593

Axles and brakes

 

 

 

 

 

 

732

 

 

1,147

 

 

1,879

Total sales

 

$

1,988

 

$

1,950

 

$

2,703

 

$

3,095

 

$

9,736

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Emission solutions

 

$

1,035

 

$

882

 

$

793

 

$

789

 

$

3,499

Filtration

 

 

372

 

 

374

 

 

354

 

 

338

 

 

1,438

Turbo technologies

 

 

367

 

 

351

 

 

325

 

 

308

 

 

1,351

Electronics and fuel systems

 

 

263

 

 

241

 

 

210

 

 

185

 

 

899

Automated transmissions

 

 

115

 

 

146

 

 

111

 

 

106

 

 

478

Total sales

 

$

2,152

 

$

1,994

 

$

1,793

 

$

1,726

 

$

7,665

Distribution Segment Sales by Product Line

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

2022

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Parts

 

$

924

 

$

990

 

$

945

 

$

959

 

$

3,818

Engines

 

 

441

 

 

429

 

 

449

 

 

457

 

 

1,776

Power generation

 

 

401

 

 

441

 

 

431

 

 

501

 

 

1,774

Service

 

 

351

 

 

393

 

 

414

 

 

403

 

 

1,561

Total sales

 

$

2,117

 

$

2,253

 

$

2,239

 

$

2,320

 

$

8,929

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Parts

 

$

757

 

$

765

 

$

800

 

$

823

 

$

3,145

Engines

 

 

334

 

 

351

 

 

377

 

 

437

 

 

1,499

Power generation

 

 

418

 

 

454

 

 

438

 

 

452

 

 

1,762

Service

 

 

326

 

 

350

 

 

344

 

 

346

 

 

1,366

Total sales

 

$

1,835

 

$

1,920

 

$

1,959

 

$

2,058

 

$

7,772

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:

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

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

In millions

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

$

611

 

$

655

 

$

664

 

$

585

 

$

2,515

Industrial

 

 

324

 

 

399

 

 

412

 

 

399

 

 

1,534

Generator technologies

 

 

87

 

 

89

 

 

88

 

 

102

 

 

366

Total sales

 

$

1,022

 

$

1,143

 

$

1,164

 

$

1,086

 

$

4,415

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

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

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Units

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Power generation

 

2,100

 

1,800

 

2,500

 

2,000

 

8,400

Industrial

 

1,000

 

1,200

 

1,900

 

1,300

 

5,400

Total units

 

3,100

 

3,000

 

4,400

 

3,300

 

13,800

 

Contacts

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

Contacts

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