Cummins raises expectations for 2023 after 15 percent revenue increase in third quarter
Cummins Inc. has reported a strong third quarter of 2023, and showed its optimism for its full year results by increasing its revenue guidance looking forward.
In the three months ending September 30, 2023, Cummins reported $8.4 billion in revenue, a 15-percent increase from the same period of 2022. Net income attributable to Cummins in the quarter was $656 million, or $4.59 per share, compared to $400 million the year before. Net cash provided by operating activities was a record $1.5 billion.
"We delivered solid profitability and record operating cash flow in the third quarter," said Jennifer Rumsey, Chair and CEO. "While full year revenues are at the high end of our expectations, we are seeing signs of moderating demand in some markets and are taking steps to reduce costs and position the company for success in 2024. I am deeply appreciative of our Cummins employees, who continue to innovate for our customers and demonstrate the flexibility required to meet global demand."
Sales in North America increased 16 percent in the quarter, while international revenues rose 13 percent. Cummins attributed the rise to strong demand across most global markets as well as the addition of Meritor.
The Engines segment was up 5 percent in the period on sales of $2.9 billion, while Components increased 20 percent to $3.2 billion.
On the strength of the year thus far, Cummins has declared it will raise its full year 2023 revenue guidance to be up 18 to 21 percent, compared to the previous guidance of 15 to 20 percent. EBITDA is now expected to be in the range of 15.2 to 15.4 percent, narrowing the range of the previous guidance of 15.0 to 15.7 percent.