- Cummins is raising its long-term financial targets as a
result of its strengthening portfolio and continued execution on
both its strategy and commitments.
- Cummins is well-positioned to meet customer needs, drive
real-world greenhouse gas reductions and generate growth regardless
of the pace of the transition to zero emissions.
- Cummins will continue to drive further improvement in its
base business while successfully scaling AcceleraTM by Cummins,
delivering profitable growth and higher operating cash
flow.
At a meeting with analysts and shareholders today, members of
the leadership team of Cummins Inc. (NYSE: CMI), shared the
Company’s plans to raise its long-term financial expectations,
relative to its prior Analyst Day, and deliver increasing returns
to shareholders.
“Two years ago, we introduced Destination Zero as our winning
growth strategy. This is proving to be the right strategy for our
customers, for the environment and for the continued growth of
Cummins,” Jennifer Rumsey, Chair and Chief Executive Officer, said
at the meeting. “Since our last Analyst Day, we have continued to
strengthen our position and execute on both our strategy and
financial commitments. As a result, I’m excited to share we are
raising our long-term financial expectations as we lead the
transition.”
The Company is uniquely positioned to lead the transition to
zero emissions and outgrow its markets, through its multi-solution
approach that leverages advancements and product portfolios from
both its base business and Accelera. “Cummins is able to win with
our strategy because of our integrated suite of innovative
technologies and capabilities, strong customer partnerships,
financial strength that allows us to invest in our future, and our
skilled global workforce. All of this positions us to succeed.”
Jenny Bush, President, Power Systems Business, summarized the
key factors that have transformed the profitability of this
business over the past two years and highlighted opportunities for
growth in revenue and profitability through 2030. “We are excited
about the future of Power Systems with a clear focus on investment
priorities and opportunities to deliver top-line growth, especially
in the datacenter market, and further expand margins.”
Amy Davis, President of Accelera and Cummins’ Components
Business, updated on the progress made in the Accelera business and
highlighted how Cummins’ position has advanced over the last two
years. “Our thesis still holds true. Accelera is best positioned
because of our broad portfolio of technologies, our knowledge and
experience in global industrial markets and our strong
relationships with OEMs and end customers.” Davis also explained
how the business is committed to driving improvements in financial
performance as the business scales up and moves to breakeven in
2027.
Lastly, Mark Smith, Chief Financial Officer, summarized the
Company’s plans for growth, margin expansion and capital
allocation. “We will continue to drive further improvement in our
business as we expand margins in our base business and successfully
scale our Accelera business. Cummins has a strong track record of
raising performance cycle over cycle. As we drive further
profitability, we aim to deliver higher operating cash flow,
allowing us to continue to invest to further strengthen our
leadership position in core markets and return excess cash to
shareholders.”
Webcast information
A copy of the presentation used in the meeting and a replay on
the webcast is available at investor.cummins.com.
About Cummins Inc.
Cummins Inc., a global power solutions leader, is comprised of
five business segments – Components, Engine, Distribution, Power
Systems and Accelera by Cummins – supported by our global
manufacturing and extensive service and support network, skilled
workforce and vast technological expertise. Cummins is committed to
its Destination Zero strategy, which is grounded in the company’s
commitment to sustainability and helping its customers successfully
navigate the energy transition with its broad portfolio of
products. The products range from advanced diesel, natural gas,
electric and hybrid powertrains and powertrain-related components
including, aftertreatment, turbochargers, fuel systems, valvetrain
technologies, controls systems, air handling systems, automated
transmissions, axles, drivelines, brakes, suspension systems,
electric power generation systems, batteries, electrified power
systems, hydrogen production technologies and fuel cell products.
Headquartered in Columbus, Indiana (U.S.), since its founding in
1919, Cummins employs approximately 75,500 people committed to
powering a more prosperous world through three global corporate
responsibility priorities critical to healthy communities:
education, environment, and equality of opportunity. Cummins serves
its customers online, through a network of company-owned and
independent distributor locations, and through thousands of dealer
locations worldwide and earned about $735 million on sales of $34.1
billion in 2023. See how Cummins is powering a world that's always
on by accessing news releases and more information at
https://www.cummins.com/.
Forward-looking disclosure statement
Information provided in this release that is not purely
historical are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements regarding our forecasts, guidance, preliminary results,
expectations, hopes, beliefs and intentions on strategies regarding
the future. These forward-looking statements include, without
limitation, statements relating to our plans and expectations for
our revenues, EBITDA and agreement in principle to settle
regulatory proceedings regarding our emissions certification and
compliance process for pick-up truck applications. Our actual
future results could differ materially from those projected in such
forward-looking statements because of a number of factors,
including, but not limited to: any adverse consequences resulting
from entering into the Agreement in Principle, including required
additional mitigation projects, adverse reputational impacts and
potential resulting legal actions; increased scrutiny from
regulatory agencies, as well as unpredictability in the adoption,
implementation and enforcement of emission standards around the
world; evolving environmental and climate change legislation and
regulatory initiatives; changes in international, national and
regional trade laws, regulations and policies; changes in taxation;
global legal and ethical compliance costs and risks; future bans or
limitations on the use of diesel-powered products; failure to
successfully integrate and / or failure to fully realize all of the
anticipated benefits of the acquisition of Meritor, Inc. (Meritor);
raw material, transportation and labor price fluctuations and
supply shortages; aligning our capacity and production with our
demand; the actions of, and income from, joint ventures and other
investees that we do not directly control; large truck
manufacturers' and original equipment manufacturers' customers
discontinuing outsourcing their engine supply needs or experiencing
financial distress, or change in control; product recalls;
variability in material and commodity costs; the development of new
technologies that reduce demand for our current products and
services; lower than expected acceptance of new or existing
products or services; product liability claims; our sales mix of
products; climate change, global warming, more stringent climate
change regulations, accords, mitigation efforts, greenhouse gas
regulations or other legislation designed to address climate
change; our plan to reposition our portfolio of product offerings
through exploration of strategic acquisitions and divestitures and
related uncertainties of entering such transactions; increasing
interest rates; challenging markets for talent and ability to
attract, develop and retain key personnel; exposure to potential
security breaches or other disruptions to our information
technology environment and data security; political, economic and
other risks from operations in numerous countries including
political, economic and social uncertainty and the evolving
globalization of our business; competitor activity; increasing
competition, including increased global competition among our
customers in emerging markets; failure to meet environmental,
social and governance (ESG) expectations or standards, or achieve
our ESG goals; labor relations or work stoppages; foreign currency
exchange rate changes; the performance of our pension plan assets
and volatility of discount rates; the price and availability of
energy; continued availability of financing, financial instruments
and financial resources in the amounts, at the times and on the
terms required to support our future business; and other risks
detailed from time to time in our SEC filings, including
particularly in the Risk Factors section of our 2023 Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders,
potential investors and other readers are urged to consider these
factors carefully in evaluating the forward-looking statements and
are cautioned not to place undue reliance on such forward-looking
statements. The forward-looking statements made herein are made
only as of the date of this release and we undertake no obligation
to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise. More
detailed information about factors that may affect our performance
may be found in our filings with the SEC, which are available at
http://www.sec.gov or at http://www.cummins.com in the Investor
Relations section of our website.
Presentation of Non-GAAP Financial Information
EBITDA is a non-GAAP measure used in this release and is defined
and reconciled to what management believes to be the most
comparable GAAP measure in a schedule attached to this release,
except for forward-looking measures of EBITDA where a
reconciliation to the corresponding GAAP measures is not available
due to the variability, complexity and limited visibility of the
non-cash items that are excluded from the non-GAAP outlook measure.
Cummins presents this information as it believes it is useful to
understanding the Company's operating performance, and because
EBITDA is a measure used internally to assess the performance of
the operating units.
Webcast information
Cummins management will host a teleconference to discuss these
results today at 10 a.m. EDT. This teleconference will be webcast
and available on the Investor Relations section of the Cummins
website at www.cummins.com. Participants wishing to view the
visuals available with the audio are encouraged to sign-in a few
minutes prior to the start of the teleconference.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240516667554/en/
Jon Mills Director, External Communications 317-658-4540
Jon.mills@cummins.com
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