Courtesy-Cummins.com
COLUMBUS, Ind. – Cummins Inc. released results for the third quarter of 2024 on Tuesday.
Cummins Chair/CEO Jennifer Rumsey said, “We achieved strong sales and profitability in the third quarter, led by improvement in our Power Systems and Distribution businesses, and have adjusted our full-year projection for EBITDA percentage to be at the top end of the prior range. We continue to advance our Destination Zero strategy as we deliver innovative technologies for our customers, strengthen our position in key markets, and drive improvement in our financial performance.”
Third quarter revenues of $8.5 billion were flat to the same quarter in 2023. Sales in North America were down 1% and international revenues were up 2%.
Net income attributable to Cummins in the third quarter was $809 million, or $5.86 per diluted share, compared to $656 million, or $4.59 per diluted share, in 2023. The tax rate in the third quarter was 19.2% including $36 million, or $0.26 per diluted share, of favorable discrete tax items. The third quarter of 2023 included costs related to the separation of Atmus of $26 million, or $0.14 per diluted share.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) in the third quarter were $1.4 billion, or 16.4% of sales, compared to $1.2 billion, or 14.6% of sales, a year ago. EBITDA for the third quarter of 2023 included the costs related to the separation of Atmus noted above.
Based on its current forecast, Cummins is maintaining its full-year 2024 revenue guidance to range from down 3% to flat. EBITDA is expected to be approximately 15.5%; at the top end of the previous guidance of 15.0% to 15.5%.
Cummins says it plans to continue generating strong operating cash flow and returns for shareholders and is committed to its long-term strategic goal of returning 50% of operating cash flow back to shareholders. In the near term, the company stated it will focus on reinvesting for profitable growth, dividends, and reducing debt.
