Cummins sees recovery from pandemic year; considers filtration biz future
Cummins is bouncing back from last year’s pandemic-caused financial slump. The company is announcing second-quarter sales this year of $6.1 billion, a 59 percent increase from last year.
The Columbus based engine manufacturer reports sales in North America were up 74 percent quarter over quarter and 42 percent in global markets. Earnings before interest, taxes, depreciation and amortization were $974 million in the second quarter compared to $549 million in 2020. Net income was $600 million.
Cummins still expects revenue growth of 20 to 24 percent year-over-year and expects to return 75 percent of its operating cash flow to shareholders.
Cummins is also announcing that it is exploring options for its filtration business, including breaking it off into a separate company. Cummins Filtration was founded in 1958 and the company says splitting it off as a standalone company could allow accelerated growth as the business diversifies into new products and markets. The business had sales of about $1.2 billion last year.