Jennifer Rumsey, Cummins president and CEO, speaks to employees. Photo courtesy Cummins.com

Cummins Inc. is projecting revenues to increase between 12% and 17% in the coming year.

The owner of the Jamestown Engine Plant in Busti has reported fourth-quarter earnings of $631 million. Full-year revenues were $28.1 billion, For the year, the company reported profit of $2.15 billion, or $15.12 per share. Revenue was reported as $28.07 billion.

Based on its current forecast, Cummins projects full year 2023 revenues to be up 12 to 17 percent, and EBITDA to be in the range of 14.5 and 15.2 percent of sales.

“There are four key takeaways from my comments today,” said Mark Smith, Cummins chief financial officer. “First, we delivered strong results in the fourth quarter of 2022, exceeding our own projections for revenue and EBITDA from three months ago, and we delivered stronger margins Engines, Components, Distribution and Power Systems compared to a year ago. Second, we continue to make good progress on the integration of Meritor and we remain on-track to deliver $130 million of pretax synergies by the end of year three. We returned $1.2 billion to shareholders in 2022 in the form of dividends and share repurchases. Finally, demand for our products remains strong, supporting increased revenues in our core business and New Power and growth in EBITDA and earnings per share in 2023.”

A regular topic of Cummins’ officials’ fourth quarter earnings conference call with investor analysts was the company’s acquisition of Meritor Inc. Cummins officials say Meritor was a target for acquisition due to its expertise in axle and brake technology.

Cummins also acquired the acquisition of Siemens Commercial Vehicles business, a leading global supplier of high-performance electric drive systems for commercial vehicles. Cummins completed the acquisition of Jacobs Vehicle Systems (JVS), a supplier of engine braking, cylinder deactivation, start and stop and thermal management technologies which are key components to meeting current and future emissions regulations.

“Yes, we are right now really focused on integrating the Meritor business, the Siemens Commercial Vehicle business and the investments that we were already making within New Power and having a number of conversations with our customers on how we bring that together to deliver those electric powertrains and components to meet their needs. So, it brings some strong products, employees as well as customer relationships, and we’re seeing growing opportunities as we have relationships at a senior, more strategic level with these customers to grow our business going forward,” said Jennifer Rumsey, Cummins president and CEO. “It’s really early days at this point, so we’ll continue to talk about that as we bring those businesses together.”

Cummins also unveiled in 2022 the industry’s first unified, fuel-agnostic internal combustion powertrain platforms. This technology approach will be applied across Cummins’ X-Series, L-Series and B-Series product platforms, and helps fleets reduce carbon emissions by enabling vehicles to run on low to zero carbon fuels. The platform utilizes the internal combustion engine technology that fleets are already familiar with while also applying a high level of parts and integration commonality across fuels including diesel, natural gas, hydrogen and other fuel applications.

“We are focused on continuing to meet more stringent regulatory requirements and do so with products that will provide benefits to the environment and exceed ourcustomer needs,” Rumsey said in response to an analyst question. “We now have clarity on the EPA 2027 NOx regulations that happenedlate last year, and they finalize that standard at a 0.035 gram NOx. And our intention is to offer a full product lineup with our new fuel-agnostic engine platforms to meet that regulation, and we’re finalizing our product plans right now with our customers on those. But we really feel well positioned to invest in really as a part of our Destination Zero strategy, reduce CO2 and NOx impact to the environment and offer products — market-leading products to our customers with that regulation.”