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Dec 31, 2021
Cummins Q4 2021 Earnings Report
Reported flat revenue and decreased net income due to supply chain constraints.
Key Takeaways
Cummins reported flat fourth-quarter revenues compared to the same period last year, while net income decreased. The company faced significant supply chain constraints, leading to elevated costs and impacting margins. Full year revenues reached a record $24 billion, but fourth-quarter performance was affected by industry challenges.
Fourth quarter revenues were $5.9 billion, flat compared to 2020.
Net income attributable to Cummins for the fourth quarter was $394 million ($2.73 per diluted share), compared to $501 million ($3.36 per diluted share) in 2020.
Full year revenues reached $24 billion, a 21 percent increase from 2020.
The company expects full year 2022 revenues to be up 6 percent.
Revenue by Segment
Forward Guidance
Cummins projects full year 2022 revenues to be up 6 percent, and EBITDA to be approximately 15.5 percent of sales. Revenue is expected to increase in all regions and major markets except China.
Positive Outlook
- Full year 2022 revenues are projected to increase by 6 percent.
- EBITDA is expected to be approximately 15.5 percent of sales for full year 2022.
- Revenues are expected to increase in all regions and major markets except China.
- The company plans to continue to generate strong operating cash flow.
- The company will continue to generate returns for shareholders.
Challenges Ahead
- Demand in China is expected to moderate after a record year in 2021.
- Industry continues to experience significant supply chain constraints.
- Elevated manufacturing costs are expected to continue.
- Elevated logistics costs are expected to continue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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