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Mar 31, 2022
Cummins Q1 2022 Earnings Report
Cummins' first quarter results were announced, showing increased revenues and solid profitability despite supply chain challenges and costs associated with suspending operations in Russia.
Key Takeaways
Cummins reported a 5% increase in first-quarter revenues to $6.4 billion, driven by strong demand in North America. Net income was $418 million, impacted by costs related to the suspension of operations in Russia and the separation of the Filtration business. The company is raising its full-year revenue guidance to up 8 percent.
First quarter revenues reached $6.4 billion, with a GAAP net income of $418 million.
EBITDA was 11.8 percent of sales, and diluted EPS was $2.92.
Results include $158 million in costs related to the suspension of operations in Russia and $17 million related to the separation of the Filtration business.
Full year 2022 revenue guidance raised to up 8 percent, while maintaining EBITDA guidance of approximately 15.5 percent.
Cummins
Cummins
Cummins Revenue by Segment
Revenue by Segment
Engine Revenue
CapyFin.comComponents Revenue
CapyFin.comDistribution Revenue
CapyFin.com Forward Guidance
Cummins is raising its full year 2022 revenue guidance to up 8 percent. Full-year 2022 EBITDA is expected to be approximately 15.5 percent.
Positive Outlook
- Stronger demand in North America
- Strong demand in other markets
- Company plans to return approximately 50 percent of Operating Cash Flow to shareholders
- Company plans to return cash in the form of dividends
- Company plans to return cash in the form of share repurchases
Challenges Ahead
- Ongoing impact of COVID-19, especially in China
- Effect of the conflict in Ukraine continue to present challenges to our global operations
- Global supply chain challenges
- Expenses associated with the separation of the Filtration business have been excluded from the outlook provided
- Expenses associated with the indefinite suspension of our operations in Russia have been excluded from the outlook provided
Revenue & Expenses
Visualization of income flow from segment revenue to net income