Cummins posts quarterly loss hit by $2.04 billion US regulatory charge

Cummins

06/02/2024 13:32

Feb 6 (Reuters) - Engine maker Cummins  CMI.N  reported
a fourth-quarter loss on Tuesday, hit by a $2.04 billion charge
as part of its emissions settlement with U.S agencies.
    The company agreed to a record-setting fine, as part of a
lawsuit by the U.S. Justice Department and California charging
the company with installing devices designed to cheat emissions
control.
    Cummins reported a net loss of $1.43 billion, or $10.01 per
share, for the quarter ended Dec. 31, compared to a profit of
$631 million, or $4.43 per share, a year earlier.
    Apart from the $2.04 billion charge, the company said it
took a $42 million hit from costs related to the implementation
of its voluntary retirement and separation programs and a $33
million hit from costs related to the separation of its engine
filter unit, Atmus.
    Elevated operating expenses as well as softening aftermarket
demand has also weighed on the company's quarterly results, in
spite the implementation of cost cutting initiatives. 
    The Indiana-based company now expects its full-year 2024
revenues to decline between 2% and 5% on a year-over-year basis
with EBITDA in the range of 14.4% to 15.4% of sales.
    The company posted net sales of $8.54 billion for the
reported quarter versus $7.77 billion in the prior-year quarter.

 (Reporting by Raechel Thankam Job and Abhinav Parmar; Editing
by Shailesh Kuber)
 ((RaechelThankam.Job@thomsonreuters.com;))