Cummins Inc. has recently released its 10-Q report, providing a detailed look at the company's financial condition and results of operations. The company, headquartered in Columbus, Indiana, is a global leader in designing, manufacturing, distributing, and servicing diesel and natural gas engines, electric and hybrid powertrains, and related components. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera, serving various markets including heavy and medium-duty trucks, buses, construction, mining, marine, and more.
In the 10-Q report, Cummins Inc. reported net sales of $8.796 billion for the second quarter of 2024, a 2% increase compared to the same period in 2023. The company also reported net income attributable to Cummins Inc. of $726 million for the same period. The report highlighted the favorable performance in the North American on-highway truck markets and increased power generation demand, partially offset by decreased sales due to the divestiture of Atmus.
Cummins Inc. also disclosed a reduction in shares of its common stock outstanding by 5.6 million shares as a result of the divestiture of Atmus Filtration Technologies Inc. Additionally, the report mentioned the company's agreement with the U.S. Environmental Protection Agency, the California Air Resources Board, and other entities to resolve certain regulatory civil claims regarding its emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S.
The report provided a breakdown of net sales by geographic area, showing a 4% increase in the U.S. and Canada and a 2% decline in international demand for the three months ended June 30, 2024, compared to the same period in 2023. For the six months ended June 30, 2024, worldwide revenues increased by 1%, driven by increased power generation demand and higher demand in North American on-highway truck markets, partially offset by decreased sales due to the divestiture of Atmus and weaker demand in global construction markets.
Furthermore, the report detailed sales and EBITDA (earnings before interest, taxes, depreciation, and amortization) by operating segment for the three and six months ended June 30, 2024, compared to the same periods in 2023. The Components segment reported a 13% decrease in sales and a 16% decrease in EBITDA, while the Power Systems segment saw a 9% increase in sales and a remarkable 50% increase in EBITDA for the three months ended June 30, 2024, compared to the same period in 2023.
The market has reacted to these announcements by moving the company's shares 4.1% to a price of $303.72. For the full picture, make sure to review Cummins's 10-Q report.
