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Cummins Inc CMI

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Cummins’ Fourth-Quarter Results Show a Return to Revenue Growth as Customer Demand Picks Up

Analyst Note

| Brian Bernard, CFA, CPA |

Cummins' fourth-quarter revenue increased 5% year over year, improving from the 11% decline in third-quarter revenue. The company’s components and engine segments led the way, increasing 18% and 2% year over year, respectively. The power systems (down 6%) and distribution (down 2%) segments reported lower sales in the quarter, however, revenue declines slowed significantly compared to the third quarter.

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Company Profile

Business Description

Cummins is a leading manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, along with diesel-powered electric generators. The firm’s revenue historically has been tied to the class 8 truck market, where, as the industry leader, it currently supplies 35% of engines. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers who make and aggressively market their own engines. Despite robust competition across all its segments and ever-increasing government regulation of diesel emissions in the past three decades, Cummins has been able to grow its revenue to over $19 billion in 2020. Cummins is headquartered in Columbus, Indiana, where it was founded in 1919.

500 Jackson Street, Box 3005
Columbus, IN, 47202-3005
T +1 812 377-5000
Sector Industrials
Industry Specialty Industrial Machinery
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 57,825