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Jun 28, 2020

Cummins Q2 2020 Earnings Report

Cummins' Q2 2020 results were impacted by COVID-19 related customer shutdowns and weak economic activity, leading to lower demand in most end markets and regions except China.

Key Takeaways

Cummins Inc. reported a 38% decrease in second quarter revenues to $3.9 billion compared to the same quarter in 2019. Net income attributable to Cummins was $276 million ($1.86 per diluted share), compared to $675 million ($4.27 per diluted share) in 2019.

Second quarter revenues were $3.9 billion; GAAP Net Income was $276 million.

Second quarter EBITDA was 14.3 percent; Diluted EPS was $1.86.

The company ended the quarter with cash, cash equivalents and marketable securities of $2.1 billion and committed borrowing capacity of $3.5 billion.

The company’s long-term credit ratings remained unchanged at A+ from Standard & Poor’s and A2 from Moody’s with stable outlooks

Total Revenue
$3.85B
Previous year: $6.22B
-38.1%
EPS
$1.95
Previous year: $4.27
-54.3%
EBITDA as % of sales
14.3%
Gross Profit
$890M
Previous year: $1.64B
-45.8%
Cash and Equivalents
$1.75B
Previous year: $1.4B
+25.3%
Free Cash Flow
-$99M
Previous year: $675M
-114.7%
Total Assets
$20.3B
Previous year: $20.3B
+0.3%

Cummins

Cummins

Cummins Revenue by Segment

Forward Guidance

The company currently expects third quarter revenues to improve from second quarter levels, however, there remains significant uncertainty around how COVID-19 will impact end market demand as well as customer and supplier operations. Due to this uncertainty the company is not providing full year revenue or profitability guidance for 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income