A Cummins Inc. logo is pictured outside one of the company’s manufacturing plants. Press photo from Cummins.com

Based on the current forecast, Cummins projects full year 2021 revenues to increase between 8% and 12% this year.

Facilities like the Jamestown Engine Plant are expected to be a big part of that revenue increase. Production for heavy-duty trucks in North America is projected to be 245,000 to 265,000 units in 2021, a 30% to 40% increase year-over-year.

In the medium-duty truck market, Cummins officials said in a conference call Thursday with investor analysts that market size should be 120,000 to 130,000 units, a 20% to 30% increase from last year. Cummins will begin selling engines to Isuzu for use in medium-duty trucks as part of a collaboration that began in 2019, including the delivery of next generation low-emission products, and are excited to take our partnership to the next level.

“We have delivered some initial units which are being incorporated into vehicles in North America now, and plan to begin serial production in the second quarter of 2021,” said Tom Linebarger, Cummins chairman and CEO. “In 2023, we expect to supply engines to Isuzu for truck applications in Japan and Southeast Asia. Our engine shipments for pickup trucks in North America are expected to be up 5% compared to 2020.”

Company officials reported fourth quarter revenues of $5.8 billion, an increase of 5% from the same quarter in 2019. Sales in North America were flat while international revenues increased 12%, driven by strong demand in China truck and construction markets as well as the growth in new product sales in India.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter were $837 million (14.4% of sales), compared to $682 million (12.2% of sales) excluding restructuring a year ago. Fourth quarter EBITDA included $36 million of expenses associated with reorganization activities and facility closures primarily driven by transformation initiatives in Cummins’ Distribution segment.

“Current indicators point to improving demand in a number of key regions and markets in 2021. However, significant uncertainty remains, requiring continued strong focus on managing costs and cash flow as our markets continue to recover around the world. We are still operating under a pandemic with extreme safety measures in place and our suppliers and customers are doing the same. This is presenting challenges to global supply chains as our industry responds to rising demand across multiple end markets. Having effectively managed through an extremely challenging 2020, Cummins is in a strong position to keep investing in future growth while continuing to return cash to shareholders.” Linebarger said.

Revenues for the full 2020 year were $19.8 billion, 16% lower than 2019. Sales in North America declined 21% and international revenues declined 7%. Sales declined in all major regions except China, where demand for trucks and construction equipment reached record levels.

“We faced many challenges in 2020 driven by the severe global impact of the COVID-19 pandemic.” Linebarger said. “I want to thank all of our employees for their dedication to our company and our customers as they adjusted to the unprecedented slowdown in the global economy and then responded as demand accelerated sharply in the second half of the year, all while facing significant disruption to their daily routines at work and home.”

Other 2020 highlights at Cummins include:

¯ In response to the COVID-19 pandemic, Cummins used its filter technology to provide 146 tons of filtration media to mask manufacturers across the globe, which has been used to produce more than 108 million masks.

¯ Establishing a joint venture called NPROXX to provide hydrogen storage tank solutions to customers in multiple applications including rail, truck, bus, and other on-highway applications to advance the adoption of hydrogen-based technologies.