Cummins sees double-digit revenue growth for fiscal 2023 on engine demand
(Reuters) - Cummins Inc on Monday forecast fiscal 2023 revenue growth between 12% and 17%, anticipating strong demand for its engines used in trucks and other heavy vehicles.
The company, which benefited from robust demand for trucks amid a recovery in economic activities and increase in e-commerce deliveries, reported a jump of nearly 9% in fourth-quarter sales for its engine segment, its biggest unit.
Truckmaker Paccar Inc, a Cummins customer, also reported a better-than-expected quarterly profit last month.
"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," Cummins Chief Executive Jennifer Rumsey said on Monday.
However, the company also noted a 16% fall in engine sales in international markets due to lower demand in China and the indefinite suspension of operations in Russia.
The company's net income rose to $631 million, or $4.43 per share, for the quarter ended Dec. 31, from $394 million, or $2.73 per share, a year earlier.
Cummins reported net sales of $7.77 billion, compared with estimates of $7.20 billion, according to Refinitiv data.
Rumsey said on Monday that Cummins expects revenue growth and margin expansion in its core business and strong growth in its power segment in fiscal 2023.
The company's new power segment designs, manufactures, sells and supports hydrogen production solutions as well as electrified power systems.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Shilpi Majumdar)