- Third quarter revenues of $8.5 billion; GAAP1 Net Income of
$809 million, or 9.6% of sales
- EBITDA in the third quarter was 16.4% of sales; Diluted EPS
of $5.86
- The company is maintaining its full year 2024 revenue
guidance of down 3% to flat.
- EBITDA is now expected to be approximately 15.5% compared to
previous guidance of 15.0% to 15.5%.
Cummins Inc. (NYSE: CMI) today reported results for the third
quarter of 2024.
“We achieved strong sales and profitability in the third
quarter, led by improvement in our Power Systems and Distribution
businesses, and have adjusted our full year projection for EBITDA
percentage to be at the top end of the prior range,” said Jennifer
Rumsey, Chair and CEO of Cummins. “We continue to advance our
Destination Zero strategy as we deliver innovative technologies for
our customers, strengthen our position in key markets and drive
improvement in our financial performance.”
Third quarter revenues of $8.5 billion were flat to the same
quarter in 2023. Sales in North America decreased 1% while
international revenues increased 2%.
Net income attributable to Cummins in the third quarter was $809
million, or $5.86 per diluted share, compared to $656 million, or
$4.59 per diluted share, in 2023. The tax rate in the third quarter
was 19.2% including $36 million, or $0.26 per diluted share, of
favorable discrete tax items. The third quarter of 2023 included
costs related to the separation of Atmus of $26 million, or $0.14
per diluted share.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) in the third quarter were $1.4 billion, or 16.4% of sales,
compared to $1.2 billion, or 14.6% of sales, a year ago. EBITDA for
the third quarter of 2023 included the costs related to the
separation of Atmus noted above.
2024 Outlook:
Based on its current forecast, Cummins is maintaining its
full-year 2024 revenue guidance to be in the range of down 3% to
flat. EBITDA is expected to be approximately 15.5%; at the top end
of the previous guidance of 15.0% to 15.5%.
Cummins plans to continue generating strong operating cash flow
and returns for shareholders and is committed to our long-term
strategic goal of returning 50% of operating cash flow back to
shareholders. In the near term, we will focus on reinvesting for
profitable growth, dividends and reducing debt.
“We solidified our expectations on profitability for 2024 to the
top end of our prior range thanks to continued improvements in
Power Systems and Distribution segments. Although we faced slowing
demand in the North American heavy-duty truck market during the
third quarter and anticipate this trend to persist into the fourth
quarter, Cummins remains well-positioned to deliver strong
financial performance, invest in future growth and return cash to
shareholders,” said Rumsey.
Third Quarter 2024 Highlights:
- Cummins increased its quarterly common stock cash dividend from
$1.68 to $1.82 per share. The company has increased the quarterly
dividend to shareholders for 15 consecutive years.
- Cummins started full production of the X15N™ natural gas engine
at its Jamestown Engine Plant, which celebrated its 50th
anniversary in the third quarter. The Cummins X15N is part of the
X-series Cummins’ HELM™ lineup, a global engine platform that is
derived from a common base and offers multiple fuel types including
natural gas, advanced diesel and hydrogen.
- Cummins attended IAA Transportation 2024 in Hannover, Germany,
to showcase a diverse portfolio of powertrain and component
technologies as part of the company’s Destination Zero strategy to
progress industry decarbonization. Highlighted products at the
booth included Euro-7 ready X10 and the X15H hydrogen internal
combustion engines, a hydrogen fuel cell engine, next-generation
lithium iron phosphate battery solutions, eAxles, eTurbocharger,
eCompressor and hydrogen fuel storage solutions, as well as fully
integrated powertrains.
- Accelera™ by Cummins celebrated the opening of its new
electrolyzer manufacturing plant in Guadalajara, Castilla-La
Mancha, Spain. The plant has the capacity to produce 500 megawatts
(MW) of electrolyzers per year, scalable to more than 1 gigawatt
(GW) per year in the future.
- Cummins was recognized as one of the 2024 100 Best Companies by
Seramount, an organization focused on empowering inclusive
workplaces; named a Veteran Friendly Employer by U.S. Veterans
Magazine; and ranked #55 on Glassdoor’s Best Places to Work in
2024.
1 Generally Accepted Accounting Principles in the U.S.
Third quarter 2024 detail (all comparisons to same period in
2023):
Components Segment
- Sales - $2.7 billion, down 16%
- Segment EBITDA - $351 million, or 12.9% of sales compared to
$441 million, or 13.6% of sales, which included the operating
results of the Atmus business and $20 million of costs related to
its separation
- Revenues in North America decreased by 14% and international
sales decreased by 18% primarily due to the separation of Atmus and
lower demand in heavy-duty truck.
Engine Segment
- Sales - $2.9 billion, down 1%
- Segment EBITDA - $427 million, or 14.7% of sales, compared to
$395 million, or 13.5% of sales
- Revenues decreased 2% in North America and increased 4% in
international markets due to softening demand in the North American
heavy-duty truck market and strength in global medium-duty truck
markets.
Distribution Segment
- Sales - $3.0 billion, up 16%
- Segment EBITDA - $370 million, or 12.5% of sales, compared to
$306 million, or 12.1% of sales
- Revenues in North America increased 13% and international sales
increased by 25% driven by increased demand for power generation
products, particularly for data center applications, and pricing
actions.
Power Systems Segment
- Sales - $1.7 billion, up 17%
- Segment EBITDA - $328 million, or 19.4% of sales, compared to
$234 million, or 16.2% of sales
- Power generation revenues increased 24% driven by increased
global demand, particularly for the data center market. Industrial
revenues increased 7% primarily due to strong mining demand more
than offsetting weaker oil and gas markets.
Accelera Segment
- Sales - $110 million, up 7%
- Segment EBITDA loss - $115 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.
About Cummins Inc.
Cummins Inc., a global power solutions leader, is comprised of
five business segments – Components, Engine, Distribution, Power
Systems and Accelera by Cummins – supported by our global
manufacturing and extensive service and support network, skilled
workforce and vast technological expertise. Cummins is committed to
its Destination Zero strategy, which is grounded in the company’s
commitment to sustainability and helping its customers successfully
navigate the energy transition with its broad portfolio of
products. The products range from advanced diesel, natural gas,
electric and hybrid powertrains and powertrain-related components
including, aftertreatment, turbochargers, fuel systems, valvetrain
technologies, controls systems, air handling systems, automated
transmissions, axles, drivelines, brakes, suspension systems,
electric power generation systems, batteries, electrified power
systems, hydrogen production technologies and fuel cell products.
Headquartered in Columbus, Indiana (U.S.), since its founding in
1919, Cummins employs approximately 75,500 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 $735 million on sales of $34.1
billion in 2023. See how Cummins is powering a world that's always
on by accessing news releases and more information at
https://www.cummins.com/.
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 the Settlement Agreements to resolve
regulatory proceedings regarding our emissions certification and
compliance process for certain engines primarily used in pick-up
truck applications in the U.S. 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 Settlement Agreements, 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 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, 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; climate change, global warming, more
stringent climate change regulations, accords, mitigation efforts,
greenhouse gas regulations or other legislation designed to address
climate change; 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;
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 2023 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 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. EDT. 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
2024
2023
NET SALES
$
8,456
$
8,431
Cost of sales
6,285
6,360
GROSS MARGIN
2,171
2,071
OPERATING EXPENSES AND INCOME
Selling, general and administrative
expenses
807
831
Research, development and engineering
expenses
359
376
Equity, royalty and interest income from
investees
99
118
Other operating expense, net
54
32
OPERATING INCOME
1,050
950
Interest expense
83
97
Other income, net
76
25
INCOME BEFORE INCOME TAXES
1,043
878
Income tax expense
200
188
CONSOLIDATED NET INCOME
843
690
Less: Net income attributable to
noncontrolling interests
34
34
NET INCOME ATTRIBUTABLE TO CUMMINS
INC.
$
809
$
656
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO CUMMINS INC.
Basic
$
5.90
$
4.63
Diluted
$
5.86
$
4.59
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING
Basic
137.2
141.8
Diluted
138.1
142.8
(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
2024
2023
NET SALES
$
25,655
$
25,522
Cost of sales
19,250
19,274
GROSS MARGIN
6,405
6,248
OPERATING EXPENSES AND INCOME
Selling, general and administrative
expenses
2,474
2,457
Research, development and engineering
expenses
1,107
1,110
Equity, royalty and interest income from
investees
325
370
Other operating expense, net
131
78
OPERATING INCOME
3,018
2,973
Interest expense
281
283
Other income, net
1,504
166
INCOME BEFORE INCOME TAXES
4,241
2,856
Income tax expense
618
623
CONSOLIDATED NET INCOME
3,623
2,233
Less: Net income attributable to
noncontrolling interests
95
67
NET INCOME ATTRIBUTABLE TO CUMMINS
INC.
$
3,528
$
2,166
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO CUMMINS INC.
Basic
$
25.47
$
15.29
Diluted
$
25.31
$
15.19
WEIGHTED-AVERAGE COMMON SHARES
OUTSTANDING
Basic
138.5
141.7
Diluted
139.4
142.6
(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,
2024
December 31,
2023
ASSETS
Current assets
Cash and cash equivalents
$
1,733
$
2,179
Marketable securities
518
562
Total cash, cash equivalents and
marketable securities
2,251
2,741
Accounts and notes receivable, net
5,387
5,583
Inventories
6,134
5,677
Prepaid expenses and other current
assets
1,544
1,197
Total current assets
15,316
15,198
Long-term assets
Property, plant and equipment, net
6,176
6,249
Investments and advances related to equity
method investees
1,922
1,800
Goodwill
2,412
2,499
Other intangible assets, net
2,462
2,519
Pension assets
1,208
1,197
Other assets
2,556
2,543
Total assets
$
32,052
$
32,005
LIABILITIES
Current liabilities
Accounts payable (principally trade)
$
4,206
$
4,260
Loans payable
441
280
Commercial paper
1,636
1,496
Current maturities of long-term debt
654
118
Accrued compensation, benefits and
retirement costs
1,011
1,108
Current portion of accrued product
warranty
685
667
Current portion of deferred revenue
1,225
1,220
Other accrued expenses
1,745
3,754
Total current liabilities
11,603
12,903
Long-term liabilities
Long-term debt
4,856
4,802
Deferred revenue
1,090
966
Other liabilities
3,162
3,430
Total liabilities
$
20,711
$
22,101
EQUITY
Cummins Inc. shareholders’ equity
Common stock, $2.50 par value, 500 shares
authorized, 222.5 and 222.5 shares issued
$
2,612
$
2,564
Retained earnings
20,660
17,851
Treasury stock, at cost, 85.4 and 80.7
shares
(10,783
)
(9,359
)
Accumulated other comprehensive loss
(2,174
)
(2,206
)
Total Cummins Inc. shareholders’
equity
10,315
8,850
Noncontrolling interests
1,026
1,054
Total equity
$
11,341
$
9,904
Total liabilities and equity
$
32,052
$
32,005
(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
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Consolidated net income
$
843
$
690
Adjustments to reconcile consolidated net
income to net cash provided by operating activities
Depreciation and amortization
266
257
Deferred income taxes
(7
)
(106
)
Equity in income of investees, net of
dividends
12
13
Pension and OPEB expense
9
1
Pension contributions and OPEB
payments
(13
)
(12
)
Changes in current assets and liabilities,
net of acquisitions
Accounts and notes receivable
270
188
Inventories
(257
)
85
Other current assets
(219
)
(54
)
Accounts payable
(236
)
(22
)
Accrued expenses
(67
)
282
Other, net
39
207
Net cash provided by operating
activities
640
1,529
CASH FLOWS FROM INVESTING
ACTIVITIES
Capital expenditures
(259
)
(280
)
Acquisition of businesses, net of cash
acquired
—
7
Investments in marketable
securities—acquisitions
(349
)
(328
)
Investments in marketable
securities—liquidations
428
382
Other, net
(83
)
(35
)
Net cash used in investing activities
(263
)
(254
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings
141
42
Net borrowings of commercial paper
55
92
Payments on borrowings and finance lease
obligations
(163
)
(163
)
Dividend payments on common stock
(250
)
(238
)
Payments for purchase of redeemable
noncontrolling interests
—
(175
)
Other, net
(26
)
(24
)
Net cash used in financing activities
(243
)
(466
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS
9
1
Net increase in cash and cash
equivalents
143
810
Cash and cash equivalents at beginning of
period
1,590
1,802
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
$
1,733
$
2,612
(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
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Consolidated net income
$
3,623
$
2,233
Adjustments to reconcile consolidated net
income to net cash provided by operating activities
Gain related to divestiture of Atmus
(1,333
)
—
Depreciation and amortization
794
760
Deferred income taxes
(106
)
(238
)
Equity in income of investees, net of
dividends
(74
)
(100
)
Pension and OPEB expense
28
4
Pension contributions and OPEB
payments
(72
)
(115
)
Changes in current assets and liabilities,
net of acquisitions and divestiture
Accounts and notes receivable
109
(447
)
Inventories
(726
)
(318
)
Other current assets
(370
)
(191
)
Accounts payable
27
43
Accrued expenses
(2,000
)
543
Other, net
165
333
Net cash provided by operating
activities
65
2,507
CASH FLOWS FROM INVESTING
ACTIVITIES
Capital expenditures
(668
)
(694
)
Acquisition of businesses, net of cash
acquired
(58
)
(127
)
Investments in marketable
securities—acquisitions
(1,062
)
(976
)
Investments in marketable
securities—liquidations
1,113
1,002
Cash associated with Atmus divestiture
(174
)
—
Other, net
(220
)
(65
)
Net cash used in investing activities
(1,069
)
(860
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings
2,623
779
Net borrowings (payments) of commercial
paper
140
(566
)
Payments on borrowings and finance lease
obligations
(1,386
)
(391
)
Dividend payments on common stock
(719
)
(683
)
Payments for purchase of redeemable
noncontrolling interests
—
(175
)
Other, net
(94
)
(33
)
Net cash provided by (used in) financing
activities
564
(1,069
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS
(6
)
(67
)
Net (decrease) increase in cash and cash
equivalents
(446
)
511
Cash and cash equivalents at beginning of
year
2,179
2,101
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
$
1,733
$
2,612
(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,
2024
External sales
$
2,287
$
2,215
$
2,942
$
912
$
100
$
8,456
$
—
$
8,456
Intersegment sales
437
698
10
775
10
1,930
(1,930
)
—
Total sales
2,724
2,913
2,952
1,687
110
10,386
(1,930
)
8,456
Research, development and engineering
expenses
85
147
13
57
57
359
—
359
Equity, royalty and interest income (loss)
from investees
12
53
25
20
(11
)
99
—
99
Interest income
4
2
7
1
—
14
—
14
EBITDA (2)
351
427
370
328
(115
)
1,361
28
1,389
Depreciation and amortization (3)
121
62
31
33
16
263
—
263
EBITDA as a percentage of segment
sales
12.9
%
14.7
%
12.5
%
19.4
%
NM
13.1
%
16.4
%
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
(4)
395
306
234
(114
)
1,262
(32
)
1,230
Depreciation and amortization (3)
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
%
"NM" - not meaningful information
(1) Included intersegment sales,
intersegment profit in inventory and unallocated corporate
expenses. There were no significant unallocated corporate expenses
for the three months ended September 30, 2024 and 2023, except for
$6 million of costs associated with the divestiture of Atmus
Filtration Technologies Inc. (Atmus) in 2023.
(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) 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.
(4) Included $20 million of costs
associated with the divestiture of Atmus.
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,
2024
External sales
$
7,647
$
6,923
$
8,292
$
2,508
$
285
$
25,655
$
—
$
25,655
Intersegment sales
1,391
2,069
24
2,157
29
5,670
(5,670
)
—
Total sales
9,038
8,992
8,316
4,665
314
31,325
(5,670
)
25,655
Research, development and engineering
expenses
250
468
41
180
166
1,105
2
1,107
Equity, royalty and interest income (loss)
from investees
51
158
73
65
(22
)
325
—
325
Interest income
21
16
29
7
—
73
—
73
EBITDA (2)
1,230
(3)
1,286
978
866
(333
)
4,027
1,279
5,306
Depreciation and amortization (4)
367
181
92
99
45
784
—
784
EBITDA as a percentage of total sales
13.6
%
14.3
%
11.8
%
18.6
%
NM
12.9
%
20.7
%
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
%
"NM" - not meaningful information
(1) Included intersegment sales,
intersegment profit in inventory and unallocated corporate
expenses. The nine months ended September 30, 2024, included a $1.3
billion gain related to the divestiture of Atmus and $14 million of
costs associated with the divestiture of Atmus. The nine months
ended September 30, 2023, included $17 million of costs associated
with the divestiture of Atmus.
(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 $21 million and $50 million
of costs associated with the divestiture of Atmus for the nine
months ended September 30, 2024 and 2023, respectively.
(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 $10 million and $4 million for
the nine months ended September 30, 2024 and 2023, respectively. A
portion of depreciation expense is included in research,
development and engineering expenses.
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
2024
2023
2024
2023
Manufacturing entities
Chongqing Cummins Engine Company, Ltd.
$
15
$
7
$
51
$
29
Dongfeng Cummins Engine Company, Ltd.
14
15
51
52
Beijing Foton Cummins Engine Co., Ltd.
6
8
29
33
Tata Cummins, Ltd.
6
6
22
21
All other manufacturers
7
18
41
69
Distribution entities
Komatsu Cummins Chile, Ltda.
15
13
42
40
All other distributors
3
3
10
10
Cummins share of net income
66
70
246
254
Royalty and interest income
33
48
79
116
Equity, royalty and interest income from
investees
$
99
$
118
$
325
$
370
INCOME TAXES
Our effective tax rate for 2024, excluding discrete items, is
expected to approximate 23.5 percent.
Our effective tax rates for the three and nine month periods
ended September 30, 2024, were 19.2 percent and 14.6 percent,
respectively. Our effective tax rates for the three and nine months
ended September 30, 2023, were 21.4 percent and 21.8 percent,
respectively.
The three months ended September 30, 2024, contained net
favorable discrete tax items of $36 million, or $0.26 per share,
primarily due to $20 million of favorable adjustments from tax
return amendments, $15 million of favorable return to provision
adjustments and $2 million of favorable share-based compensation
tax benefits, partially offset by $1 million of other unfavorable
adjustments.
The nine months ended September 30, 2024, contained favorable
discrete tax items primarily due to the $1.3 billion non-taxable
gain on the Atmus split-off. Other discrete tax items were net
favorable by $66 million, or $0.47 per share, primarily due to $21
million of favorable adjustments related to audit settlements, $20
million of favorable adjustments from tax return amendments, $18
million of favorable return to provision adjustments and $17
million of favorable share-based compensation tax benefits,
partially offset by $7 million of unfavorable adjustments for
uncertain tax positions and $3 million of other unfavorable
adjustments.
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 benefits, partially offset by $11 million of unfavorable
adjustments for uncertain tax positions and $4 million of other
unfavorable adjustments.
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 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 the
United States (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, 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
2024
2023
2024
2023
Net income attributable to Cummins
Inc.
$
809
$
656
$
3,528
$
2,166
Net income attributable to Cummins Inc. as
a percentage of net sales
9.6
%
7.8
%
13.8
%
8.5
%
Add:
Net income attributable to noncontrolling
interests
34
34
95
67
Consolidated net income
843
690
3,623
2,233
Add:
Interest expense
83
97
281
283
Income tax expense
200
188
618
623
Depreciation and amortization
263
255
784
756
EBITDA
$
1,389
$
1,230
$
5,306
$
3,895
EBITDA as a percentage of net sales
16.4
%
14.6
%
20.7
%
15.3
%
Less:
Gain related to the divestiture of
Atmus
—
—
1,333
—
Add:
Atmus divestiture costs
—
26
35
67
Restructuring actions
—
—
29
—
EBITDA, excluding the impact of gain
recognized and costs associated with the divestiture of Atmus and
restructuring actions
$
1,389
$
1,256
$
4,037
$
3,962
EBITDA, excluding the impact of gain
recognized and costs associated with the divestiture of Atmus and
restructuring actions, as a percentage of net sales
16.4
%
14.9
%
15.7
%
15.5
%
CUMMINS INC. AND
SUBSIDIARIES
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
Drivetrain and braking systems
$
1,232
$
1,256
$
1,131
$
—
$
3,619
Emission solutions
971
941
864
—
2,776
Components and software
611
623
581
—
1,815
Atmus (1)
353
—
—
—
353
Automated transmissions
165
162
148
—
475
Total sales
$
3,332
$
2,982
$
2,724
$
—
$
9,038
(1) Included sales through the March 18,
2024, divestiture.
2023
In millions
Q1
Q2
Q3
Q4
YTD
Drivetrain and braking systems
$
1,272
$
1,249
$
1,177
$
1,124
$
4,822
Emission solutions
1,056
964
893
922
3,835
Components and software
633
616
583
577
2,409
Atmus
417
417
396
399
1,629
Automated transmissions
179
179
187
169
714
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
$
1,184
$
1,021
$
—
$
3,264
Medium-duty truck and bus
995
1,074
1,073
—
3,142
Light-duty automotive
438
461
395
—
1,294
Off-highway
436
432
424
—
1,292
Total sales
$
2,928
$
3,151
$
2,913
$
—
$
8,992
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
37,500
32,400
—
103,500
Medium-duty
75,800
79,600
79,200
—
234,600
Light-duty
54,800
57,200
41,400
—
153,400
Total units
164,200
174,300
153,000
—
491,500
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
$
990
$
1,004
$
—
$
2,995
Power generation
707
954
1,091
—
2,752
Engines
421
437
402
—
1,260
Service
406
448
455
—
1,309
Total sales
$
2,535
$
2,829
$
2,952
$
—
$
8,316
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
$
987
$
1,055
$
—
$
2,895
Industrial
420
478
508
—
1,406
Generator technologies
116
124
124
—
364
Total sales
$
1,389
$
1,589
$
1,687
$
—
$
4,665
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
3,700
2,900
—
9,600
Industrial
1,300
1,500
1,700
—
4,500
Total units
4,300
5,200
4,600
—
14,100
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/20241105615360/en/
Natalie Guzman Enterprise Communications 812-377-0500
natalie.guzman@cummins.com
Grafico Azioni Cummins (NYSE:CMI)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Cummins (NYSE:CMI)
Storico
Da Feb 2024 a Feb 2025
