Cummins sees double-digit income progress for fiscal 2023 on engine demand

(Reuters) – Cummins Inc (NYSE:) on Monday forecast fiscal 2023 income progress between 12% and 17%, anticipating sturdy demand for its engines utilized in vehicles and different heavy autos.

The corporate, which benefited from sturdy demand for vehicles amid a restoration in financial actions and enhance in e-commerce deliveries, reported a soar of practically 9% in fourth-quarter gross sales for its engine section, its greatest unit.

Truckmaker Paccar (NASDAQ:) Inc, a Cummins buyer, additionally reported a better-than-expected quarterly revenue final month.

“In 2023, we anticipate that demand will stay sturdy in most of our key areas and markets, particularly within the first half of the yr,” Cummins Chief Government Jennifer Rumsey stated on Monday.

Nonetheless, the corporate additionally famous a 16% fall in engine gross sales in worldwide markets attributable to decrease demand in China and the indefinite suspension of operations in Russia.

The corporate’s internet revenue rose to $631 million, or $4.43 per share, for the quarter ended Dec. 31, from $394 million, or $2.73 per share, a yr earlier.

Cummins reported internet gross sales of $7.77 billion, in contrast with estimates of $7.20 billion, in response to Refinitiv knowledge.

Rumsey stated on Monday that Cummins expects income progress and margin growth in its core enterprise and robust progress in its energy section in fiscal 2023.

The corporate’s new energy section designs, manufactures, sells and helps hydrogen manufacturing options in addition to electrified energy methods.