Engine-maker Cummins second quarter revenues hit $6.6 billion, an increase of 8% from the same quarter in 2021, despite a string of global challenges including energy prices, supply chain disruption and its suspension of operations in Russia.
In its Q2 report, Cummins said sales in North America increased 15% while international revenues decreased 2%, “driven primarily by a slowdown in China and the indefinite suspension of our operations in Russia”.
It was also a busy period in terms deals and acquisitions. It completed the the acquisition of JVS, adding engine braking and cylinder deactivation technologies which will key components to meeting current and future emissions regulations.
Cummins was also boosted by aftermarket drivetrain and component manufacturer Meritor’s shareholders voting in favour of its proposed takeover.
“The companies are working together to complete the acquisition this week as we have received all regulatory approvals to close the transaction,” reported Cummins in the report.
The company has also advanced several initiatives as part of its decarbonisation strategy, including tie-ins with Daimler Truck North America and Scania to deliver fuel cell electric powertrains for heavy-duty truck applications, and with Komatsu on the development of zero-emissions haulage equipment, including hydrogen fuel cell solutions for large mining haul truck applications.
Cummins, Chevron, and Walmart are also working together to integrate Cummins X15N natural gas engine, powered by renewable natural gas, into Walmart’s heavy-duty truck fleet.
“The company achieved record revenues and solid profitability in the second quarter of 2022, with demand for our products remaining strong across most of our key markets and regions, apart from China,” said President and CEO Jennifer Rumsey. “Employees across our organisation have worked tirelessly in the face of supply chain challenges and rising costs that continue to impact our industry. While navigating these challenges, we will continue to focus on enabling our customers’ success, driving cycle over cycle improvement in financial performance, investing in sustainable solutions that will protect our planet for future generations and returning excess cash to shareholders.”
“High inflation and rising global interest rates have increased uncertainty about the pace of growth in the global economy. Demand for Cummins’ products and services remains strong, and as a result we have maintained our projection for full year revenues and profitability from three months ago,” added Rumsey. “We continue to monitor economic conditions closely and will adjust our operating plans should the outlook for our core markets weaken.”
