Cummins Inc. reported strong second-quarter earnings in North America while one-time charges and COVID lockdowns in China acted as a counterweight.
Second-quarter revenues of $6.6 billion increased 8% from the same quarter in 2021. For the full year, Cummins stuck to its projection of an 8% increase in revenue.
One-time charges
Reserves related to the indefinite suspension of its Russia business partially offset those charges. The adjustment added $47 million or 33 cents a share to the bottom line.
Off-highway revenues in the engine business unit fell 8% because of a slowdown in China construction linked to COVID lockdowns. The components business also took a hit in addition to a tough comparison with year-ago results in China, whose economy recovered faster from initial covid infections than the rest of the world.
Strong EBITDA
Earnings of $1.1 billion before interest, taxes, depreciation and amortization amounted to 16% of sales. That compared to $974 million or 15.9% a year ago.
Busy quarter of collaboration
Cummins, which regularly forms collaborations, accelerated the pace during Q2, including working with:
