Cummins Posts First Quarter Results
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Columbus-based Cummins Inc. (NYSE: CMI) is reporting first quarter net income of $418 million, compared to $603 million during the same period last year. The company says the results include costs of nearly $160 million related to the suspension of operations at its facility in Russia.
Cummins manufactured products in Russia as part of a joint venture with Russian vehicle-maker KAMAZ Inc. that was signed in 2006. The company says the results also include costs of $17 million related to the separation of its filtration business.
“We delivered solid financial performance in the first quarter in the face of many challenges in our global supply chain,” said President and Chief Operating Officer Jennifer Rumsey. “The ongoing impact of COVID-19, especially in China, and the effect of the conflict in Ukraine continue to present challenges to our global operations. Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”
The company announced two acquisitions in February. Cummins entered into an agreement to acquire Meritor Inc. (NYSE: MTOR) in Michigan in a deal valued at $3.7 billion. Additionally, Cummins acquired Jacobs Vehicle Systems, a Connecticut-based manufacturer of engine braking and cylinder deactivation systems in a deal valued at $325 million.
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