Cummins released full-year results referred to the year 2022. The Columbus-based powertrain specialist recorded $28.1 billion revenues along the whole year, excluding Meritor, revenues were $26.2 billion, 9% higher than 2021. As stated by Cummins, sales in North America increased 18% and international revenues decreased 2% compared to 2021, as strong demand across all global markets was partially offset by a market slowdown in China, as well as Russia, where operations have been suspended indefinitely.
Cummins’ revenues and net income in 2022
Net income attributable to Cummins for the full year was $2.2 billion, or $15.12 per diluted share. Excluding the Meritor business and related acquisition costs, integration costs and purchase accounting impacts, net income for 2022 was $15.67 per diluted share, compared to $14.61 per diluted share in 2021. Full year results for the company included five months of operations following the acquisition of Meritor. Meritor results within 2022 include $1.9 billion in revenue and EBITDA of $26 million. Results of Meritor include an inventory valuation adjustment as required by purchase accounting, which resulted in a negative impact of $32 million.
Based on its current forecast, Cummins projects full year 2023 revenues to be up 12 to 17%, and EBITDA to be in the range of 14.5 and 15.2% of sales. The company plans to continue to generate strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50 percent of operating cash flow back to shareholders.
President and CEO Rumsey speaking
“In 2022, Cummins continued to advance its Destination Zero growth strategy through the acquisitions of Jacobs Vehicles Systems, Meritor and the Siemens Commercial Vehicles business. The innovative talent, technology and capabilities these acquisitions bring will position Cummins for success as the industry decarbonizes,” said President and CEO Jennifer Rumsey. “We delivered strong profitability in the fourth quarter and achieved record full year revenues, EBITDA and EPS last year. I want to thank all our employees for helping us navigate a difficult supply chain environment and making 2022 a successful year”.
“In 2023, we anticipate that demand will remain strong in most of our key regions and markets, especially in the first half of the year. We will continue monitoring global economic indicators closely and ensure we are prepared should economic momentum slow further,” added Rumsey. “We expect revenue growth and margin expansion in our core business and strong growth in our New Power segment in 2023.”