Despite a slowing market in China and other factors, Cummins Inc. has reported positive financial results in its second quarter of 2022.
The engine manufacturer reported revenues in the three months ending June 30, 2022 to be $6.6 billion, an increase of eight percent year-over-year. North American sales strength helped drive the increase, with a 15 percent increase for the quarter, while international revenues slid 2 percent due to the Chinese market softening and Cummins' suspension of operations in Russia.
"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 Cummins President and CEO Jennifer Rumsey. "Employees across our organization 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."
Cummins expects to maintain its full year 2022 guidance, with a revenue target of 8 percent and EBITDA of approximately 15.5 percent. The company plans to return approximately 50 percent of Operating Cash Flow to shareholders in the form of dividends and share repurchases.
Any expenses outside of the normal course of business associated with the separation of the Filtration business, the pending acquisition of Meritor, or indefinite suspension of operations in Russia have been excluded from the outlook provided, Cummins noted.
"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," said Rumsey. "We continue to monitor economic conditions closely and will adjust our operating plans should the outlook for our core markets weaken."
