CUMMINS, which has a huge plant in Darlington, has reported a year-on-year 21% increase in sales.

Revenues for the full year were $24 billion, sales in North America increased 17 per cent and international revenues increased 27 per cent.

Sales increased in all major regions compared to the prior year, which was severely impacted by the height of the COVID-19 pandemic. Net income was $2.1 billion, compared to $1.8 billion in 2020.

Read more: Darlington factory making 1.5 million engines to send across the world

Fourth quarter revenues of $5.9 billion were flat with the same quarter in 2020. Sales in North America decreased 4 percent while international revenues increased 6 percent driven by strong demand across most global markets, with the exception of China, compared to the same quarter in 2020.

Chairman and CEO Tom Linebarger said: “Strong economic recovery combined with high demand for our products resulted in record full year revenues in 2021.

"Our industry continues to experience significant supply chain constraints resulting in elevated manufacturing, logistics, and material costs resulting in margins below our expectations, particularly in the fourth quarter.”

“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.

"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 decarbonisation 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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