Cummins reveals H2-ICEs for Tata, Q1 results and new gen-sets
02 May 2024
In a busy news cycle for Cummins Inc., the company announced the appointment of Alison Trueblood as vice president – Cummins Emissions Solutions, the production of its first hydrogen combustion engine in India and its Q1 2024 results. The company also issued a formal press release on its 78 L Centum Series generator sets, which were previewed to distributors and customers at a recent event at the Power Generation business unit HQ in Fridley, Minn.
Hydrogen ICEs for Tata Motors
The Cummins B6.7H hydrogen internal combustion engines produced in India will be integrated into Tata Motors’ trucks. (Photo: Cummins)
Cummins announced this week that production of its latest hydrogen internal combustion engines (H2-ICE) for Tata Motors has begun at a new state-of-the-art manufacturing facility in Jamshedpur, India. The first B6.7H H2-ICE models rolled off the production line in March, slated to be integrated into Tata Motors’ trucks.
Tata Motors is a global automotive manufacturer and a leader in commercial vehicles in India. Production of hydrogen engines at the recently opened Jamshedpur site is the latest of several developments in the 30-year partnership between Cummins and Tata Motors in the country, which includes a 50:50 joint venture, Tata Cummins Private Limited (TCPL).
TCPL GES, a subsidiary of TCPL, was formed in March 2023 to collaborate on the design and development of low- and zero-emission propulsion technology solutions for commercial vehicles in India. The new manufacturing facility, part of the joint venture, will produce H2-ICEs for medium- and heavy-duty commercial vehicles, as well as other low- to zero-emissions technologies like batteries and hydrogen fuel cells.
The B6.7H engine is rated up to 290 hp (216 kW) output and 1,200 Nm peak torque and features technology to enhance power density, reduce friction losses and improve thermal efficiency. It shares many components with current diesel and natural gas engines, providing diesel-like performance and operating range, fits in the same footprint as a standard engine and can be refueled in minutes.
According to the companies, the installation of the B6.7H will enable Tata Motors and Cummins to demonstrate a practical, sustainable zero-carbon power option to support the decarbonization of India’s commercial vehicles industry.
Strong customer demand in Q1
Cummins reported strong demand from customers in the first quarter of 2024. According to Jennifer Rumsey, chair and CEO: “We delivered solid profitability and also completed the separation of Atmus, allowing Cummins to continue its focus on advancing innovative power solutions, and positioning Atmus to pursue its own plans for profitable growth.”
First quarter revenues of $8.4 billion were down 1% from the same quarter in 2023. Sales in North America were flat, and international revenues decreased 1% due to lower demand in China and Europe.
Net income attributable to Cummins in the quarter was $2.0 billion compared to $790 million in 2023. Cummins said the results reflect the gain related to the separation of Atmus, net of transaction costs and other expenses, of $1.3 billion, and restructuring expenses of $29 million. The first quarter of 2023 included costs related to the separation of Atmus of $18 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $2.6 billion, or 30.6% of sales, compared to $1.4 billion, or 16.1% of sales, a year ago. EBITDA for the first quarter of 2024 and first quarter of 2023 included the gain and costs noted above.
Despite segment declines, sales in Q1 were led by Components at $3.3 billion (-6%) and the Engine Segment at $2.9 billion (-2%). Segments seeing a sales increase included Distribution, up 5% to $2.5 billion; Power Systems, up 3% to $1.4 billion; and Accelera, up 9% to $93 million, though reflecting an EBITDA loss of $101 million due to costs associated with new product development and support.
Based on its current forecast, Cummins projects its full-year 2024 revenues to decline 2% to 5% on a year-over-year basis, and EBITDA to be in the range of 14.5% and 15.5% of sales. The prior guidance, which was also a decline of 2% to 5%, assumed the inclusion of the financial results of Atmus for the full year. Due to strong global demand, the revenue guidance remains unchanged despite the separation of Atmus. The current EBITDA guidance is an increase from the prior guidance of between 14.4% and 15.4%.
“We have raised our expectations on revenue and profitability for 2024 due to continued demand for Cummins’ products and services. We do still expect slowing demand in some of our key markets in the second half of the year,” Rumsey said. “Despite lower sales, Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”
New additions to Centum Series
In April, Cummins Power Generation added four new generator sets to the Centum Series, two each powered by the QSK50 and QSK78 engines. The new models include the C1750D6E and C2000D6E rated at 1,750- and 2,000-KW at 60 Hz, and the C2750D6E and C3000D6EB rated 2,750 kW and 3 MW of power at 60 Hz. All four have been engineered specifically for mission critical applications such as data centers, healthcare facilities and wastewater treatment plants.
The addition of the C1750D6E and C2000D6E gen-sets, reported earlier this year, incorporate the compact 49.8L QSK50 four-cycle industrial diesel engine, Stamford S-Range alternators and a permanent magnet generator. PowerCommand digital control comes standard.
The C2750D6E and C3000D6EB, powered by the 78 L QSK78 engine, were launched at the event late last month held in Fridley. Watch this site for more details on these two newest models, as well as an exclusive interview with Vipul Tandon, executive director, Global Power Generation at Cummins.
