Power generation company Cummins reports net sales for 2021 of $2.1 billion, a nearly 15 percent increase over the $1.8 billion in 2020. Revenues for last year were $24 billion, a 21 percent increase over 2020.
The company had net sales of $394 million in the fourth quarter, compared with $501 million in the same period last year, and fourth-quarter revenue was $5.9 billion, about the same as the fourth quarter of 2020.
“Strong economic recovery combined with high demand for our products resulted in record full year revenues in 2021,” said Chairman and CEO Tom Linebarger. “Our industry continues to experience significant supply chain constraints resulting in elevated manufacturing, logistics and material costs resulting in margins below our expectations, particularly in the fourth quarter. We have taken actions to improve margins in 2022 and expect to generate strong incremental margins through increased pricing, surcharges, a number of cost reduction initiatives and operational improvements. Having effectively managed through a challenging 2021, Cummins is in a solid position to keep investing in future growth while continuing to return cash to shareholders. The transition to low carbon power across industries will be a significant driver in the fight against climate change and will require a broad mix of innovative technologies to achieve these goals. This decarbonization effort represents a significant growth opportunity for Cummins as many of our OEM partners and end customers look to achieve their climate goals, while still having power solutions that fulfill their needs. Cummins key capabilities uniquely position us to lead in the transition to zero emissions.”
Based on the current forecast, Cummins projects full year 2022 revenues to be up 6 percent, and EBITDA to be approximately 15.5 percent of sales. The company expects revenues to increase in all regions and major markets except China where it expects demand to moderate after a record year in 2021.
In October 2021, Cummins was named to the S&P Dow Jones World and North American Sustainability Indexes. It was the 16th consecutive time the company was named to the North American index and the first time on the world index since 2013. The prestigious indices rate companies on their environmental, social and governance performance.
