Cummins expects global growth in 2023

By Redação AutoIndústria 2/8/23 | Translated by Jorge Meditsch

Cummins used the presentation of its 2022 balance to reveal projections for this year and the intention to continue generating a strong operational cashflow and profit for its shareholders. The expectation is to expand the global income from 12% to 17%, with an Ebitda from 14.5% to 15.2% of sales.

“We expect for 2023 that demand will remain strong in most of our regions and markets, especially during the first half of the year. We expect a revenue and margin expansion in our main business and a strong growth of the New Power segment”, said the president and CEO Jennifer Rumsey.

The 12% to 17% growth perspective includes the results projected in thee Meritor business, but excludes any costs or benefits associated to the planed Filtration business, as revealed in a note relased on Tuesdaay, 2/7. Regarding the component segment, Meritor’s income expectation is between US$ 4.5 billion and US$ 4,7 billion, with Ebtida from 10.3% to 11% of sales.

In the last quarter of 2022, Cummins earned US$ 7.8 billions, totalling US$ 28.1 billion in the year. Without considering Meritor – which acquisition was concluded on August 3 – revenues reached US$ 26.2 billiom 9% more than in 2021.

“Sales in North America increased by 18% and international revenue were 2% less than in 2021, as the strong demand in all global markets was partially compensated by a Chinese market deceleration, as well as in Russia”, informed the company, which had a US$ 2.2 billion profit in 2022, US$ 15.12 by diluted share. The Ebtida was US$ 3.8 billion, 13.5% of sales.