Cummins’ Moderate Second Quarter Sales Increase Tops Expectations
Cummins Inc. posted $8.796 billion in net sales for the second quarter of 2024, compared to $8.638 billion for the second quarter of 2023, a 1.8-percent increase. For the first six months of the year, net sales were $17.199 billion compared to $17.091 a year ago, a 0.6-percent increase. While the increases were small, they still topped the company’s expectations.
Sales in the second quarter in North America increased 4 percent, while international revenues decreased 2 percent.
“We achieved record quarterly sales and solid profitability in the second quarter, led by significant improvement in our Power Systems business,” said Jennifer Rumsey, chair and CEO of Cummins. “As we shared during our Analyst Day in May, our Destination Zero strategy is the right strategy for growing our business and meeting our customers’ needs today and in the future. We continue to deliver innovative technologies for our customers, execute on our financial commitments, and strengthen our position in key markets. I want to thank our talented employees for their continued efforts to drive business results and make Cummins more competitive across the globe.”
In the quarter, Accelera by Cummins, Daimler Trucks & Buses and PACCAR completed the formation of their joint venture, now known as Amplify Cell Technologies, to localize battery cell production and the battery supply chain in the United States. This strategic collaboration will advance zero-emissions technology for electric commercial vehicles and industrial applications. Amplify began construction of a 21-gigawatt hour (GWh) factory in Marshall County, Miss., with potential for further expansion as demand grows. The factory is expected to create more than 2,000 U.S. manufacturing jobs and is targeting the start of production in 2027.
Also, Cummins and Isuzu announced the launch of a new 6.7-liter engine designed for use in Isuzu’s new medium-duty truck lineup. The “Isuzu DB6A” will power on-highway truck applications built for the Japanese market and will be available for the Asia Pacific markets and other global markets later this year. Cummins also announced plans to launch a battery electric powertrain for Isuzu’s F-series in North America. Availability of the medium-duty truck is expected in 2026 and will include Accelera’s next generation lithium iron phosphate (LFP) battery technology.
Department of Energy awards $75 million
In July, Accelera was awarded $75 million for zero-emissions manufacturing from the Department of Energy to convert approximately 360,000 square feet of existing manufacturing space at its Columbus, Ind., engine plant for zero-emissions components and electric powertrain systems. The $75 million grant is the largest federal grant ever awarded solely to Cummins and is part of the appropriations related to the Inflation Reduction Act.
In the quarter, Cummins’ Power Systems segment increased sales 9 percent, with power generation revenues increasing 16 percent driven by increased global demand, particularly or the data center market. The Accelera segment jumped 31 percent, with increased electrolyzer installations. The Distribution segment increased sales 9 percent, driven by increased demand for power generation products. The Engine segment increased sales 5 percent, with strong demand in North America’s medium-duty truck market.
The Components segment declined 13 percent, primarily because of the separation of Atmus and lower demand in China and Europe.
