Q2 2024 Cummins Inc Earnings Call Transcript
Key Points
- Cummins Inc (CMI) reported record revenues of $8.8 billion for Q2 2024, a 2% increase from the same period last year.
- The company announced a significant partnership with Isuzu Motors Limited, launching a new 6.7-liter engine for the Japan market and a battery electric powertrain for Isuzu's F-Series in North America.
- Cummins Inc (CMI) received a $75 million grant from the Department of Energy to convert manufacturing space for zero emissions components, the largest federal grant ever awarded solely to the company.
- The Power Systems segment achieved record sales and profitability, driven by a 23% increase in North American power generation revenues.
- The company raised its full-year revenue guidance to down 3% to flat, and its EBITDA guidance to 15% to 15.5%, reflecting improved outlooks in key markets.
- International revenues decreased by 2% compared to last year, with notable declines in China and India.
- The Accelera business segment saw a reduction in full-year sales expectations by $50 million due to slower-than-expected energy transition progress.
- Joint venture income decreased by $30 million from the prior year, primarily driven by lower technology fees and a weak domestic truck market in China.
- Operating cash flow was an outflow of $851 million, mainly due to a $1.9 billion payment required by previously disclosed settlement agreements.
- The company anticipates a softening in the North America heavy-duty truck market in the second half of the year, projecting a 10% decline in Q3 and 20% overall for the second half.
Welcome to the Cummins Inc second quarter 2024 earnings call. On our call today is Jen Rumsey, Chair and CEO; Mark Smith, Vice President and CFO; and Chris Clulow, Vice President of Investor Relations. (Operator Instructions) This conference is being recorded.
It is now my pleasure to introduce your host, Chris Clulow. Thank you, you may begin.
Thanks very much. Good morning, everyone, and welcome to our teleconference today to discuss Cummins results for the second quarter of 2024. Participating with me today are Jennifer Rumsey, our Chair and Chief Executive Officer; and Mark Smith, our Chief Financial Officer, will all be available to answer questions at the end of the teleconference.
Before we start, please note that some of the information that you will hear or be given today will consist of forward-looking statements within the meaning of the Securities and Exchange Act of 1934. Such statements express our forecast, expectations, hopes and beliefs and intentions on
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