A few days ago Cummins reported results for the third quarter of 2023. Third quarter revenues of $8.4 billion increased 15 percent from the same quarter in 2022. Sales in North America increased 16 percent and international revenues increased 13 percent due to the addition of Meritor and strong demand across most global markets. The third quarter of 2022 included two months of consolidated operations for Meritor following the completion of the acquisition on August 3, 2022.
Read here about the second quarter 2023 results.
“We delivered solid profitability and record operating cash flow in the third quarter,” said Jennifer Rumsey, Chair and CEO. “While full year revenues are at the high end of our expectations, we are seeing signs of moderating demand in some markets and are taking steps to reduce costs and position the company for success in 2024. I am deeply appreciative of our Cummins employees, who continue to innovate for our customers and demonstrate the flexibility required to meet global demand.”
Net income attributable to Cummins in the third quarter was $656 million, or $4.59 per diluted share compared to $400 million, or $2.82 per diluted share in 2022. Results included costs associated with the separation of Atmus of $26 million, or $0.14 per diluted share, in the third quarter of 2023, and $16 million in the third quarter of 2022. The third quarter of 2022 also included $77 million of acquisition, integration and inventory valuation adjustments related to Meritor. The tax rate in the third quarter was 21.4 percent including $5 million, or $0.03 per diluted share, of favorable discrete tax items, compared to $57 million of unfavorable discrete tax items a year ago.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter were $1.2 billion, or 14.6 percent of sales, compared to $884 million, or 12.1 percent of sales, a year ago. EBITDA for the third quarter of 2023 included the costs related to the separation of Atmus and the third quarter of 2022 EBITDA included costs related to the separation of Atmus and costs related to the acquisition and integration of Meritor as noted above. The third quarter of 2022 also included a one-time employee recognition bonus with a cost impact of $56 million.
Operating cash flow for the third quarter of 2023 was a record inflow of $1.5 billion, compared to $382 million in the third quarter of 2022, as we continue to focus on working capital management within the business.
Click here to read the full report.