Cummins shares 2021 financial results. Revenues up by 21 percent compared to 2020
Revenues for the full year reached 24 billion dollars (21.5 billion euros), with both sales in North America and abroad increasing compared to 2021 (respectively, by 17% and 27%). «We have taken actions to improve margins in 2022 and expect to generate strong incremental margins through increased pricing, surcharges, a number of cost reduction initiatives and operational improvements», said CEO Tom Linebarger.
Cummins released its 2021 financial results, according to which the Group’s revenues were higher by 21 percent compared to the previous year, with the latter strongly affected by the pandemic outburst. More into details, revenues for the full year reached 24 billion dollars (21.5 billion euros), with both sales in North America and abroad increasing compared to 2021 (respectively, by 17% and 27%). EBITDA for the year was $3.5 billion (€3.1 billion; 14.7 percent of sales) compared to $3.1 billion (€2.8 billion; 15.7 percent of sales) in 2020. Here’s the link to the full Cummins results.
Cummins’ 2021 financial results: the words of CEO Linebarger
«Strong economic recovery combined with high demand for our products resulted in record full year revenues in 2021. Our industry continues to experience significant supply chain constraints resulting in elevated manufacturing, logistics, and material costs resulting in margins below our expectations, particularly in the fourth quarter», said Chairman and CEO Tom Linebarger. «We have taken actions to improve margins in 2022 and expect to generate strong incremental margins through increased pricing, surcharges, a number of cost reduction initiatives and operational improvements».
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«Having effectively managed through a challenging 2021 – he continued – Cummins is in a solid position to keep investing in future growth while continuing to return cash to shareholders. The transition to low carbon power across industries will be a significant driver in the fight against climate change and will require a broad mix of innovative technologies to achieve these goals. This decarbonization effort represents a significant growth opportunity for Cummins as many of our OEM partners and end customers look to achieve their climate goals, while still having power solutions that fulfill their needs. Cummins key capabilities uniquely position us to lead in the transition to zero emissions».
Efforts on hydrogen and electrification
Cummins is establishing partnerships and signing agreements with other major players all over the world. We’ve been recently writing about the one with Sinopec in China in view of green hydrogen, as well as the one with Isuzu in North America form the development of full-electric commercial vehicles. Talking about technology, here’s our post on an interesting article about the potential of hydrogen-fueled internal combustion engines, written by Srikanth Padmanabhan, Cummins Vice President and President of the Engine Segment.
