Stock Groups

Engine maker Cummins takes $158 million charge over operations halt in Russia -Breaking

[ad_1]

© Reuters.

(Reuters) – U.S. truck engine maker Cummins Inc (NYSE) announced Tuesday that it had taken $158 million in charges in the first quarter for Russia-related operations suspensions.

Cummins stated that the charges included inventory write downs, reserve on accounts receivables, impairment of joint venture investment with Russian truck manufacturer Kamaz Inc, and other costs.

There are many companies around the world, including Adidas (OTC) Renault (EPA:), Volvo and BMW all took a significant hit in earnings following the Russian invasion of Ukraine.

Cummins’ customers include Paccar Inc (NASDAQ:) Daimler Stellantis NV (ETR:), and AG (ETR-:) warned that there would be “some impacts” on their Russian businesses in February. They said they were analyzing existing and anticipating sanctions and are preparing accordingly.

According to the company, supply chain constraints continue to pose a problem and are limiting growth.

“We’ve experienced, and anticipate more of this inability to collect our customer receivables. We may face litigation related to the suspension of Russian commercial operations.” According to the company,

Refinitiv IBES estimated that the company would have sales of $6.39 Billion in its first quarter. This was partly due to price increases.

[ad_2]