Monday, June 9, 2025
News PouroverAI
Visit PourOver.AI
No Result
View All Result
  • Home
  • AI Tech
  • Business
  • Blockchain
  • Data Science & ML
  • Cloud & Programming
  • Automation
  • Front-Tech
  • Marketing
  • Home
  • AI Tech
  • Business
  • Blockchain
  • Data Science & ML
  • Cloud & Programming
  • Automation
  • Front-Tech
  • Marketing
News PouroverAI
No Result
View All Result

Cummins Inc. Reports Q3 2023 Financial Results, Announces Major Ventures and Raises Revenue Guidance By Investing.com

November 2, 2023
in Business
Reading Time: 5 mins read
0 0
A A
0
Share on FacebookShare on Twitter



© Reuters. Cummins Inc (NYSE:) reported strong financial results for Q3 2023, with revenues reaching $8.4 billion, a 15% increase compared to the same quarter in 2022. The company attributes this growth to robust demand and the addition of Meritor (NYSE:). Cummins also announced a series of significant events, including collaborations for its X15 engine, and raised its revenue outlook for 2023.

Key takeaways from the call:

– Cummins reported an EBITDA of $1.2 billion, a significant increase from $884 million in 2022.
– The company announced a joint venture with Daimler (OTC:) Truck and Bus and PACCAR (NASDAQ:) to boost battery cell production in the US.
– Cummins acquired two Faurecia commercial vehicle manufacturing plants.
– The company revised its 2023 revenue guidance to an increase of 18% to 21% and adjusted its EBITDA guidance range to 15.2% to 15.4%.
– Despite the positive outlook, Cummins anticipates weaker Q4 revenue due to softening aftermarket demand, a weak outlook in China, and industry supply constraints.
– To mitigate these challenges, Cummins plans to cut costs and is offering voluntary retirement and separation programs for eligible employees.
– The company returned $238 million to shareholders in dividends during Q3.
– Cummins forecasts improvements in truck demand, with a 15% to 25% increase in heavy- and medium-duty truck demand and a 10% to 20% increase in the light-duty truck market in 2022.
– The company anticipates a 20% market share for its 15-liter natural gas engine in China by the end of 2023 and plans to launch the engine in North America in 2024.
– Revenues in the global power generation markets are expected to increase by 15% to 20%, driven by the data center and mission-critical markets.
– The company announced several promotions on its leadership team, effective January 1 of next year.

During the earnings call, Jennifer Rumsey, President and COO of Cummins, discussed the company’s cost-cutting plans for Q4 and their outlook for 2023 and 2024. Mark Smith, CFO of Cummins, added that the company will provide a fuller assessment of cost and benefit impact in the next quarterly earnings call. In terms of the Chinese market, Rumsey stated that economic activity in China has been relatively weak, but they have seen some improvement in 2023 compared to 2022. They expect recovery in the economy to positively impact their business, particularly in the natural gas heavy-duty engine segment. Finally, Cummins discussed the upcoming launch of the X15 engine in North America and the potential opportunities in the natural gas market. They also provided an update on their electrolyzer business, stating that they are building up manufacturing capacity and have a growing backlog of orders.

InvestingPro Insights:

Drawing from the latest InvestingPro data, Cummins Inc. boasts a market capitalization of $30.87 billion and a P/E ratio of 12.14, indicating a relatively low valuation compared to its earnings. Over the last twelve months as of Q2 2023, the company saw a significant revenue growth of 29.87%, reflecting its strong financial performance. Two key InvestingPro Tips to note are the company’s consistent dividend payments and its position within the Machinery industry. Cummins has not only maintained its dividend payments for an impressive 53 consecutive years but has also raised them for 18 straight years, signaling a robust financial health and strong commitment to shareholder returns. Additionally, as a prominent player in the Machinery industry, Cummins’ performance and strategic decisions can have significant implications on the sector trends. InvestingPro offers a wealth of additional insights and tips for Cummins Inc., enhancing investors’ understanding of the company’s financial health and market position. By leveraging these data and insights, investors can make more informed decisions about their investment strategies.

Full transcript – CMI Q3 2023:

Operator: Greetings, and welcome to the Cummins Incorporated. Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Clulow, Vice President of Investor Relations. Thank you, Chris. You may begin.

Chris Clulow: Great. Thank you very much. Good morning everyone and welcome to our teleconference today to discuss Cummins’ results for the third quarter of 2023. Participating with me today are Jennifer Rumsey, our Chair and Chief Executive Officer, and Mark Smith, our Chief Financial Officer. We will all be available to answer questions at the end of the teleconference.

Before we start, please note that some of the information that you will hear or be given today will consist of forward-looking statements within the meaning of the Securities and Exchange Act of 1934. Such statements express our forecasts, expectations, hopes, beliefs, and intentions on strategies regarding the future. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of risks and uncertainties. More information regarding such risks and uncertainties is available in the forward-looking disclosure statements in the slide deck and our filings with the Securities and Exchange Commission, particularly the Risk Factors section of our most recently filed Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q.

During the course of this call, we will be discussing certain non-GAAP financial measures, and we will refer you to our website for the reconciliation of those measures to GAAP financial measures. Our press release, with a copy of the financial statements and a copy of today’s webcast presentation, are available on our website within the Investor Relations section at cummins.com.

With that out of the way, I will turn you over to our Chair and CEO, Jennifer Rumsey, to kick us off.

Jennifer Rumsey: Thank you Chris and good morning everyone. I’ll start with a summary of our third quarter financial results. Then I will discuss our sales and end market trends by region. I will finish with a discussion of our outlook for 2023. Mark will then take you through more details about our third quarter financial performance and our forecast for the year.

Before getting into the details of our performance, I’m excited to first highlight a few major events from the third quarter that demonstrate the continued execution of our strategy. On September 6th, Accelerate by Cummins, Daimler Truck and Bus and PACCAR, along with EV Energy joined forces to accelerate and localize battery cell production and the battery cell supply chain in the United States. The planned joint venture will manufacture battery cells for electric commercial vehicles and industrial applications, creating highly desirable manufacturing jobs in the United States in the growing clean technology sector. Total investment by the partners is expected to be in the range of $2 billion to $3 billion for the 21 gigawatt hour factory with production expected to begin in 2027. We see this partnership as an opportunity to share investment with two long-standing partners while advancing a key technology solution for our customers and industry and collectively to accelerate the energy transition in the United States.

In October, Cummins completed its acquisition of two Faurecia commercial vehicle manufacturing plants and their related activities, one in Columbus, Indiana and one in Roman Netherlands. This acquisition is a natural addition to the Cummins Emission Solutions business and will help ensure we meet current and future demand for low emission products.

Lastly, Cummins announced several collaborations with our natural gas X15 engine that further enable our customers to achieve their decarbonization goals. Freightliner announced they are working with Cummins to offer the new X15 natural gas engine and its heavy-duty Freightliner Cascadia trucks. Also Cummins and Knight Transportation (NYSE:), Inc. announced that the industry’s largest full truckload company has successfully tested Cummins new X15 engine in Southern California, using renewable natural gas to realize reductions in nitrous oxides and greenhouse gas without compromising performance. The X15 N, which will launch in North America in 2024 is the first natural gas engine to be designed specifically for the heavy duty on-highway truck application.

Now, I will comment on the overall company performance for the third quarter of 2023 and…



Source link

Tags: announcesCumminsFinancialguidanceInvesting.comMajorraisesReportsResultsRevenueVentures
Previous Post

🔥 Social Media Marketing Crash Course 2023 | Learn Social Media Marketing In 8 Hours | Simplilearn

Next Post

Court rules former Hapoalim execs will pay bank NIS 3.56m

Related Posts

Can You Guess What Percentage Of Their Wealth The Rich Keep In Cash?
Business

Can You Guess What Percentage Of Their Wealth The Rich Keep In Cash?

June 10, 2024
UGRO Capital: Targeting to hit milestone of Rs 20,000 cr loan book in 8-10 quarters: Shachindra Nath
Business

UGRO Capital: Targeting to hit milestone of Rs 20,000 cr loan book in 8-10 quarters: Shachindra Nath

June 10, 2024
Blinken set to arrive in Egypt for Gaza ceasefire push By Reuters
Business

Blinken set to arrive in Egypt for Gaza ceasefire push By Reuters

June 10, 2024
Volvo is moving EV production from China to Belgium as the EU eyes tariffs on Beijing
Business

Volvo is moving EV production from China to Belgium as the EU eyes tariffs on Beijing

June 9, 2024
France’s Macron calls for snap election after losing big to the far right in EU vote
Business

France’s Macron calls for snap election after losing big to the far right in EU vote

June 9, 2024
Upgrades for Best Buy and Lululemon By Investing.com
Business

Upgrades for Best Buy and Lululemon By Investing.com

June 9, 2024
Next Post
Court rules former Hapoalim execs will pay bank NIS 3.56m

Court rules former Hapoalim execs will pay bank NIS 3.56m

Zero-shot adaptive prompting of large language models – Google Research Blog

Zero-shot adaptive prompting of large language models – Google Research Blog

Identifying Controversial Pairs in Item-to-Item Recommendations

Identifying Controversial Pairs in Item-to-Item Recommendations

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
23 Plagiarism Facts and Statistics to Analyze Latest Trends

23 Plagiarism Facts and Statistics to Analyze Latest Trends

June 4, 2024
Managing PDFs in Node.js with pdf-lib

Managing PDFs in Node.js with pdf-lib

November 16, 2023
Accenture creates a regulatory document authoring solution using AWS generative AI services

Accenture creates a regulatory document authoring solution using AWS generative AI services

February 6, 2024
Salesforce AI Introduces Moira: A Cutting-Edge Time Series Foundation Model Offering Universal Forecasting Capabilities

Salesforce AI Introduces Moira: A Cutting-Edge Time Series Foundation Model Offering Universal Forecasting Capabilities

April 3, 2024
The Importance of Choosing a Reliable Affiliate Network and Why Olavivo is Your Ideal Partner

The Importance of Choosing a Reliable Affiliate Network and Why Olavivo is Your Ideal Partner

October 30, 2023
Programming Language Tier List

Programming Language Tier List

November 9, 2023
Can You Guess What Percentage Of Their Wealth The Rich Keep In Cash?

Can You Guess What Percentage Of Their Wealth The Rich Keep In Cash?

June 10, 2024
AI Compared: Which Assistant Is the Best?

AI Compared: Which Assistant Is the Best?

June 10, 2024
How insurance companies can use synthetic data to fight bias

How insurance companies can use synthetic data to fight bias

June 10, 2024
5 SLA metrics you should be monitoring

5 SLA metrics you should be monitoring

June 10, 2024
From Low-Level to High-Level Tasks: Scaling Fine-Tuning with the ANDROIDCONTROL Dataset

From Low-Level to High-Level Tasks: Scaling Fine-Tuning with the ANDROIDCONTROL Dataset

June 10, 2024
UGRO Capital: Targeting to hit milestone of Rs 20,000 cr loan book in 8-10 quarters: Shachindra Nath

UGRO Capital: Targeting to hit milestone of Rs 20,000 cr loan book in 8-10 quarters: Shachindra Nath

June 10, 2024
Facebook Twitter LinkedIn Pinterest RSS
News PouroverAI

The latest news and updates about the AI Technology and Latest Tech Updates around the world... PouroverAI keeps you in the loop.

CATEGORIES

  • AI Technology
  • Automation
  • Blockchain
  • Business
  • Cloud & Programming
  • Data Science & ML
  • Digital Marketing
  • Front-Tech
  • Uncategorized

SITEMAP

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2023 PouroverAI News.
PouroverAI News

No Result
View All Result
  • Home
  • AI Tech
  • Business
  • Blockchain
  • Data Science & ML
  • Cloud & Programming
  • Automation
  • Front-Tech
  • Marketing

Copyright © 2023 PouroverAI News.
PouroverAI News

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In