Cummins (NYSE: CMI) records first quarter EPS of $2.92, which was lower than the $3.56 analyst estimate. Revenue for the first quarter came to around $6.4 billion which was more than the $6.03 billion consensus estimate.
First quarter financial results included costs of about $1.03 per diluted share, or $158 million, linked to the indefinite suspensions in its Russian-based operations and $0.09 per diluted shares, or $17 million, linked to the Filtration business separation.
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Management statements
Chief Executive Officer and Chairman, Tom Linebarger, said:
Demand for our products remains strong across many of our key markets and regions, resulting in record revenues in the first quarter of 2022.
The CEO continued on saying:
We have implemented pricing actions to counter rising input costs, which contributed to solid profitability in the first quarter. Supply chain constraints continue to be a challenge and are limiting growth in our industry.
Financial highlights
The company reported Q1 revenues of about $6.4 billion, which was an increase of about 5% from the same quarter in the previous year. North American sales increased by about 12% while revenues in international markets dropped by 3%, driven mainly by a go slow in the Chinese market.
EBITDA in the first quarter came to about $755 million, which was 11.8% of sales, compared to the $980 million the company made in the same quarter of the previous financial year.
Cummins net income in the first quarter of 2022 was $2.92 per diluted share, or $418 million, compared to the $603 million it recorded in the same quarter of the previous financial year. Q1 results for 2022 included costs related to the suspension of Russian operations and the Filtration business separation.
The company is going to raise its full-year revenue guidance of 2022 by close to 8% according to current financial outlooks of 2022. This will be an increase of around 6% or so because of the strong demands in the North American markets,
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