Multinational engine manufacturer and distributor Cummins Inc. has reported its financial results for Q3, and with Chair and CEO Jennifer Rumsey praising the “strong sales and profitability” of the company.
Third quarter revenues of US$8.5billion were flat to the same quarter in 2023. A minor decline (one per cent) in North American sales was largely offset by a minor increase (two per cent) in international revenues.
Year-on-year net income for Q3 soared from US$656 million in 2023 to $US809 million at a value of $5.86 per diluted share.
Cummins’ EBITDA in Q3 was US$1.4 billion compared to US$1.2 billion in 2023, however last year’s Q3 EBITDA included costs related to the separation of the company from Atmus.
“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 to be at the top end of the prior range,” Rumsey says.
“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.”
Cummins’ performance across the first three quarters of 2024 have led the company to maintain its full-year 2024 revenue guidance of down three per cent to flat, with company focus set to be placed on reinvesting for profitable growth, dividends, and reducing debt.
Full-year EBITDA is expected to be at the top end of the previous 15 to 15.5 per cent guidance.
“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,” Rumsey says.
“Although we faced slowing demand in the North American heavy-duty truck market during the third quarter and anticipate this trend to persist in the fourth quarter, Cummins is well-positioned to deliver strong financial performance invest in future growth and return cash to shareholders.”
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