CMI Stock Recent News

Cummins (CMI) agrees to pay a $1.7 billion penalty for installing emissions defeat devices on hundreds of thousands of engines.

Cummins Inc. will pay a whopping $1.67 billion fine to settle claims it violated the Clean Air Act by using devices that bypass emissions sensors on hundreds of thousands of pickup truck engines, potentially making the diesel engine maker responsible for the second-largest civil environmental penalty ever.

It is the largest-ever civil penalty for a Clean Air Act violation.

Cummins Inc. CMI, +1.44% said Friday that it expects to record a $2.04 billion charge in the fourth quarter, as the engines and powertrains maker has reached an agreement to settle U.S. regulatory claims regarding its emissions certification and compliance process. Of the total, about $1.93 billion is expected to be paid in the first half of 2024.

Outside of the last few weeks, the last time Cummins traded for a P/E ratio of 12 was Summer 2020. The industrial posted respectable net sales and diluted EPS growth for the third quarter. Cummins enjoys an A+ credit rating from S&P on a stable outlook.

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Cummins is a reliable company in the industrial sector that produces both diesel and electric engines. The company has shown strong revenue and EPS growth over the past decade and has a consistent dividend payout. Cummins has opportunities for growth in electric vehicle battery production, acquisitions, and expanding the use of natural gas engines.

Cummins Inc. has achieved record revenues, boosted its dividend, and maintained its guidance despite global challenges. The company has a top-tier dividend scorecard with a 3.1% yield, a low payout ratio, and consistent dividend growth. CMI's third-quarter earnings showed resilience, with strong revenue growth, increased profitability, and a record quarterly inflow of operating cash flow.

Get a deeper insight into the potential performance of Cummins (CMI) for the quarter ended September 2023 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.