The acquisition of Meritor added US$1.2 billion (all figures U.S.) to Cummins’ Q4 revenue, driving revenue to $7.8 billion with a $631-million profit.
Excluding Meritor’s contribution in its first complete quarter under Cummins ownership, Cummins still saw revenues climb 13% year over year, with North American sales up 25%. The integration of Meritor brought $27 million in costs in the quarter, or $83 million for the full year.
“In 2022, Cummins continued to advance its Destination Zero growth strategy through the acquisitions of Jacobs Vehicles Systems, Meritor, and the Siemens Commercial Vehicles business. The innovative talent, technology and capabilities these acquisitions bring will position Cummins for success as the industry decarbonizes,” said president and CEO Jennifer Rumsey.
Cummins has a bright outlook for 2023, anticipating revenues to climb 12-17% for the year.
“In 2023, we anticipate that demand will remain strong in most of our key regions and markets, especially in the first half of the year. We will continue monitoring global economic indicators closely and ensure we are prepared should economic momentum slow further,” said Rumsey. “We expect revenue growth and margin expansion in our core business and strong growth in our New Power segment in 2023.”