COLUMBUS, Ind.—On Feb. 8, Cummins Inc. reported its fourth quarter and full year 2023 financial results.
In a news release, the company stated is had posted record full-year revenue and operating cash flow.
“High global demand for Cummins’ diverse set of innovative products drove record full year revenues and operating cash flow in 2023,” said Jennifer Rumsey, chair and CEO of Cummins. “Excluding the impacts related to the agreement to resolve U.S. regulatory claims, 2023 was a record year for (earnings before interest, taxes, depreciation and amortization) EBITDA, net income and EPS for Cummins. Also, EBITDA percent improved year over year in the components, distribution and power systems segments. I want to thank all our employees for delivering high-quality products to our customers and making 2023 a successful year.”
Fourth quarter 2023 revenues of $8.5 billion increased 10% from the same quarter in 2022, according to the news release.
Sales in North America increased 8%, while international revenues increased 13%, reflecting strong demand across most of Cummins’ global markets during the period.
In the fourth quarter of 2023, net loss was $1.4 billion, compared to net earnings of $631 million in 2022.
The results reflect the recording of a charge related to the agreement to resolve U.S. regulatory claims previously announced in December of $2.04 billion; costs related to the voluntary retirement and separation programs of $42 million; and costs related to the separation of Atmus Filtration Technologies of $33 million.
The fourth quarter of 2022 included $19 million\of costs related to the separation of Atmus.
EBITDA in the fourth quarter of 2023 was a loss of $878 million, or negative 10.3% of sales, compared to positive $1.1 billion, or 14.2% of sales, a year ago. EBITDA for the fourth quarter of 2023 and the fourth quarter of 2022 included the costs noted above.
Revenues for the full year 2023 were $34.1 billion, 21% higher than 2022. Sales in North America increased 22%, and international revenues increased 20% compared to 2022 due to the addition of Meritor and strong demand across most global markets.
Based on its current forecast, Cummins projects full year 2024 revenues to decline 2% to 5% on a year-over-year basis and EBITDA to be in the range of 14.4% and 15.4% of sales.
“In 2024, we anticipate that demand will slow particularly in the North America heavy-duty truck market, partially offset by strength in other key markets, and have already taken some actions to reduce cost. We will continue to monitor global economic indicators closely and will ensure we are prepared to adjust our business should economic momentum slow further,” Rumsey said.
He concluded: “Consistent with how we have managed Cummins through prior cycles, and in alignment with our Destination Zero strategy, we will continue investment in new technologies and products in 2024. This sustained investment will ensure that the company will be positioned to generate strong growth and profitability in both the near- and long-terms.”
Since retiring from a career as an outdoor recreation professional from the State of Arkansas, Kris Rutherford has worked as a freelance writer and, with his wife, owns and publishes a small Northeast Texas newspaper, The Roxton Progress. Kris has worked as a ghostwriter and editor and has authored seven books of his own. He became interested in the trucking industry as a child in the 1970s when his family traveled the interstates twice a year between their home in Maine and their native Texas. He has been a classic country music enthusiast since the age of nine when he developed a special interest in trucking songs.
