Cummins Studies Sturdy Q3 Outcomes; Meritor Now A part of Firm
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Cummins Inc. reported decrease web earnings and better income within the third quarter as enterprise in North America was robust and its progress technique added prices.
Demand from prospects, particularly in North America, stays stable and the corporate has a nine-month North American backlog of engine orders with truck makers, CEO Jennifer Rumsey mentioned through the earnings name.
“Our merchandise are performing nicely, resulting in report demand from prospects and rising market share in a few of our core markets,” she mentioned. “That is direct results of the contribution from our excellent workforce.”
The Columbus, Ind.-based producer reported web earnings of $400 million attributable to it within the quarter, or $2.82 per diluted share, in contrast with $534 million, $3.69, a yr earlier.
Rumsey
That mirrored weaker three way partnership earnings in China, the corporate mentioned, a one-time bonus to staff to acknowledge their “relentless” dedication to assembly buyer demand in difficult circumstances, and prices related to each the Meritor Inc. acquisition and the deliberate separation of its filtration enterprise.
Income jumped to $7.3 billion in contrast with $5.9 billion within the 2021 interval. [Excluding the contribution of the Meritor business,third-quarter revenues were $6.6 billion, an increase of 11% from the same quarter in 2021, the company reported.
Revenue in North America increased 19%, and international revenues decreased 1% compared with the year-ago period as strong demand across all global markets was offset by a market slowdown in China, as well as Russia, where Cummins suspended operations indefinitely, the company noted.
Heavy-duty truck engine sales were $972 million compared with $861 million a year earlier. It shipped 30,200 units, up from 29,200.
Medium-duty truck and bus engine sales rose to $868 million compared with $713 million a year earlier. It shipped 69,800 units, up from 68,000.
During the third quarter, Cummins announced collaborations with Werner Enterprises, Transport Enterprise Leasing and Versatile to deliver its 15-liter hydrogen internal combustion engines. The X15H is part of Cummins’ fuel agnostic platform.
Earnings Release: @Cummins ($CMI) reports Q3 2022 results.
— Cummins Inc. (@Cummins) November 3, 2022
Werner Enterprises ranks No. 17 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
Recent federal legislation is strengthening the outlook for hydrogen in the United States, Rumsey said.
Research and development expenses in the quarter were $348 million compared with $266 million a year earlier.
The increases largely covered work on fuel agnostic engine platforms and electrolyzers, which produce hydrogen, and other new key power technologies, she said.
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“We will continue to make those investments. And, as we have in the past, we are looking closely at our priorities for next year. We are starting to more closely manage any headcount additions,” she said, “for a potential downside scenario.”
Rumsey also addressed the ]provide chain aspect.
“We proceed to see enchancment and we additionally nonetheless have points,” she mentioned. “At this level, digital parts continues to be our largest disruptor,” Rumsey mentioned, noting COVID-related dynamic lockdowns in China and congestion in sure ports, together with on the East Coast and in Europe.
“However now we have been in a position to take construct charges up and been in a position to drive some operational enhancements,” she mentioned.
Cummins accomplished the acquisition of Meritor Inc. on Aug. 3. Within the quarter, brake and axle income — a energy of Meritor — was $732 million. A yr earlier, there was none.
The corporate’s merchandise vary from diesel, pure gasoline, electrical and hybrid powertrains and powertrain-related parts together with filtration, aftertreatment, turbochargers, gas programs, controls programs, air dealing with programs, automated transmissions, axles, drivelines, brakes, suspension programs, electrical energy era programs, batteries, electrified energy programs, electrical powertrains, hydrogen manufacturing and gas cell merchandise.
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