Cummins said revenues for 2021 were $24 billion, 21 percent higher than 2020. Sales in North America increased 17 percent, and international revenues increased 27 percent. Sales increased in all major regions compared to the prior year, which was severely impacted by the height of the Covid-19 pandemic.
“Strong economic recovery combined with high demand for our products resulted in record full year revenues in 2021,” said Tom Linebarger, chair/CEO, in a prepared statement. “Our industry continues to experience significant supply chain constraints resulting in elevated manufacturing, logistics, and material costs resulting in margins below our expectations, particularly in the fourth quarter.
“We have taken actions to improve margins in 2022 and expect to generate strong incremental margins through increased pricing, surcharges, a number of cost reduction initiatives and operational improvements. Having effectively managed through a challenging 2021, Cummins is in a solid position to keep investing in future growth while continuing to return cash to shareholders. The transition to low carbon power across industries will be a significant driver in the fight against climate change and will require a broad mix of innovative technologies to achieve these goals. This decarbonization effort represents a significant growth opportunity for Cummins as many of our OEM partners and end customers look to achieve their climate goals, while still having power solutions that fulfill their needs. Cummins key capabilities uniquely position us to lead in the transition to zero emissions.”
Cummins 2022 outlook
Cummins projects full year 2022 revenues to be up 6 percent. Its expects revenues to increase in all regions and major markets except China, where it expects demand to moderate after a record year in 2021.
Source: Cummins
