Columbus-based Cummins Inc. (NYSE: CMI) is reporting full-year net income of $2.1 billion in 2021, compared to $1.8 billion the previous year. Chief Executive Officer Tom Linebarger says strong economic recovery combined with high demand for the company’s products resulted in record full year revenues last year.
However, Linebarger says the industry continues to experience “significant supply chain constraints” which resulted in elevated manufacturing, logistics, and material costs, particularly in the fourth quarter.
The company reported fourth quarter net income of $394 million, down from $501 million during the same period in 2020.
“We have taken actions to improve margins in 2022 and expect to generate strong incremental margins through increased pricing, surcharges, a number of cost reduction initiatives and operational improvements,” said Linebarger. “Having effectively managed through a challenging 2021, Cummins is in a solid position to keep investing in future growth while continuing to return cash to shareholders. The transition to low carbon power across industries will be a significant driver in the fight against climate change and will require a broad mix of innovative technologies to achieve these goals. This decarbonization effort represents a significant growth opportunity for Cummins as many of our OEM partners and end customers look to achieve their climate goals, while still having power solutions that fulfill their needs. Cummins key capabilities uniquely position us to lead in the transition to zero emissions.”
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