- Cummins Inc. (NYSE:CMI) reported fourth-quarter sales of $5.85 billion, flat year-over-year, beating the consensus of $5.79 billion.
- Sales in North America decreased 4% while international revenues increased 6% Y/Y, driven by strong demand across most global markets, except China.
- Sales by segments: Engine $2.4 billion (+4% Y/Y), Distribution $2.1 billion (+3% Y/Y), Components $1.7 billion (-6% Y/Y), Power Systems $1.1 billion (+10% Y/Y), and New Power $34 million (flat).
- The gross margin contracted by 83 bps to 22.5%. Operating income was $495 million (-21.3% Y/Y), and the margin contracted by 233 bps to 8.5%.
- EPS decreased to $2.73 from $3.36 in 4Q20, missing the consensus of $3.15.
- Cummins generated an FY21 operating cash flow of $2.26 billion, compared to $2.72 billion a year ago.
- EBITDA was $705 million compared to $837 million in 4Q20, and the margin contracted by 230 bps to 12.1%.
- FY22 Outlook: Cummins expects revenues to be up 6% and EBITDA to be ~15.5% of sales. The company expects revenues to increase in all regions and major markets except China.
- Price Action: CMI shares closed higher by 0.42% at $226.47 on Wednesday.
