Cummins Inc.
CMI,
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. The government entities involved in the claims are The U.S. Environmental Protection Agency, the California Air Resources Board, the Environment and Natural Resources Division of the Department of Justice, and the California Attorney General’s Office. “Cummins conducted an extensive internal review and worked collaboratively with the regulators for more than four years,” Cummins said in a statement. “The company has seen no evidence that anyone acted in bad faith and does not admit wrongdoing.” The stock, which gained 0.7% in premarket trading, has edged up 0.7% year to date, while the S&P 500
SPX,
has advanced 23.6%.