COLUMBUS, Ind. (Inside INdiana Business) — Cummins Inc. (NYSE: CMI) is reporting fourth-quarter and full-year 2020 results, which were bolstered late in the year by strong demand in Asian markets.
The company reports Q4 net income of $501 million, up from $390 million during the same period a year ago. For the full year, the company recorded net income of $1.7 billion, down from $2.2 billion the previous year.
The company says fourth-quarter revenues increased 5% over the previous year, driven by record sales in the China truck and construction markets as well as the growth in new product sales in India. But North American sales during the period were flat.
Cummins says revenues for the full year were off 16%, with a 21% drop in the North American market alone.
“We faced many challenges in 2020 driven by the severe global impact of the COVID-19 pandemic,” said Chairman and Chief Executive Officer Tom Linebarger. “I want to thank all of our employees for their dedication to our company and our customers as they adjusted to the unprecedented slowdown in the global economy and then responded as demand accelerated sharply in the second half of the year, all while facing significant disruption to their daily routines at work and home.”
The company is expecting to rebound in 2021. Based on the current forecast, Cummins projects full-year 2021 revenues to be up 8 to 12%.
The company says it expects revenues to increase in all regions and major markets except China where it expects moderation after a record year.
“Current indicators point to improving demand in a number of key regions and markets in 2021. However, significant uncertainty remains, requiring continued strong focus on managing costs and cash flow as our markets continue to recover around the world,” said Linebarger.
Linebarger says suppliers and customers are still operating under the pandemic with “extreme safety measures” in place.
“This is presenting challenges to global supply chains as our industry responds to rising demand across multiple end markets,” said Linebarger.
Cummins says it distributed 146 tons of filtration material to mask manufacturers, which has been used to produce more than 108 million masks.
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