CMI

Cummins Inc. Releases 10-Q Report

Cummins Inc. has recently released its 10-Q report, providing a comprehensive overview of its financial condition and results of operations for the first quarter of 2024. The company, headquartered in Columbus, Indiana, operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. Cummins designs, manufactures, and distributes diesel and natural gas engines, electric and hybrid powertrains, and related components globally. It also offers power generation systems, aftermarket parts, and in-shop and field-based repair services.

In the 10-Q report, Cummins discussed various factors that could affect its future performance, including government regulations, business conditions and disruptions, products and technology, and general market conditions. The company also highlighted its Management’s Discussion and Analysis of Financial Condition and Results of Operations, cautioning readers about the risks associated with forward-looking statements.

The report also contained an executive summary and financial highlights, showcasing the company's global power solutions leadership and its products ranging from advanced diesel, natural gas, electric and hybrid powertrains, to powertrain-related components. Cummins sells its products to original equipment manufacturers (OEMs), distributors, dealers, and other customers worldwide, maintaining relationships with leading manufacturers such as PACCAR Inc, Traton Group, Daimler Trucks North America, and Stellantis N.V.

In terms of financial performance, Cummins reported net sales of $8.4 billion for the first quarter of 2024, a 1% decrease compared to the same period in 2023. The decrease was attributed to lower demand in heavy-duty truck markets, impacting Components product demand, and weaker demand for construction engines. The company's net income attributable to Cummins Inc. was $1.99 billion, or $14.03 per diluted share, for the first quarter of 2024, compared to $790 million, or $5.55 per diluted share, for the same period in 2023. The increase in net income was driven by a gain recognized on the divestiture of Atmus, partially offset by higher compensation and consulting expenses.

Cummins also provided a breakdown of its sales and EBITDA by operating segment for the first quarter of 2024, showing the performance of each segment. The Components segment experienced a 6% decrease in sales, while the Engine and Distribution segments reported a 2% and 5% decrease, respectively. The Power Systems segment saw a 3% increase in sales, and the Accelera segment reported a 9% increase in sales. The company's EBITDA for the first quarter of 2024 was $2.57 billion, a significant increase compared to $1.36 billion for the same period in 2023.

As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $280.19. For more information, read the company's full 10-Q submission here.

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