Power generation company Cummins reported Q1 revenues of $6.4 billion, an increase of 5 percent year-over-year.
Sales in North America increased 12 percent while international revenues decreased 3 percent, driven primarily by a slowdown in China.
“Demand for our products remains strong across many of our key markets and regions, resulting in record revenues in the first quarter of 2022,” said Chairman and CEO Tom Linebarger. “We have implemented pricing actions to counter rising input costs, which contributed to solid profitability in the first quarter. Supply chain constraints continue to be a challenge and are limiting growth in our industry.”
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter were $755, compared with $980 million a year ago.
Net income in the quarter was $418 million compared with $603 million in 2021.
The company said its Q1 income was hit by costs of $158 million related to the indefinite suspension of operations in Russia, and $17 million related to the separation of the Filtration business.
2022 Outlook:
Based on the current forecast, Cummins is raising its full year 2022 revenue guidance to up 8 percent, an increase from up 6 percent due to stronger demand in North America and other markets.
“We delivered solid financial performance in the first quarter in the face of many challenges in our global supply chain,” said President and COO Jennifer Rumsey. “The ongoing impact of COVID-19, especially in China, and the effect of the conflict in Ukraine continue to present challenges to our global operations. I am impressed with the resiliency of our employees to navigate through these difficulties and deliver for our customers. Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”
