The company said net sales increased $6.0 billion in 2023. It said sales rose 38% at the Components segment, 15% at Distribution, 13% at Power Systems and 7% at Engine. The company cited higher Components sales from axles and brakes, driven by the Meritor acquisition, as the main factor.

10-KAnnual reportFiled Feb 12, 2024Period of report Dec 31, 2023Summary published (UTC) Oct 24, 2026

Key points

AI summary

The company said net sales increased $6.0 billion in 2023. It said sales rose 38% at the Components segment, 15% at Distribution, 13% at Power Systems and 7% at Engine. The company cited higher Components sales from axles and brakes, driven by the Meritor acquisition, as the main factor.
The company said its effective tax rate in 2023 was 48.3%, compared with 22.6% in 2022. It said the rate reflected the Agreement in Principle charge of $2.0 billion recorded in Q4. The company also said $1.732 billion of that charge, mainly penalties, is not deductible for tax purposes.
The company said it generated $4.0 billion of cash from operating activities in 2023, and net cash from operating activities rose $2.0 billion from the prior year. It said working capital requirements fell $3.4 billion and net income decreased $1.3 billion.
The company said that in May 2023 it exchanged its 19.5% stake, about 16 million shares, in the Atmus IPO at $19.50 per share and used the proceeds to repay $299 million of commercial paper. It said commercial paper outstanding was $1.496 billion as of December 31, 2023, and as a result the available capacity under its revolving credit facilities fell to $2.504 billion.

Key figures

Fiscal year ended December 31, 2023

Revenue: $34.1B
Operating income: $1.8B
Net income: $840M
EPS: $5.15
Gross profit: $8.2B
Operating cash flow: $4.0B

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Net Sales Up $6.0 billion and Segment Sales Changes

The company said net sales increased $6.0 billion in 2023. It said sales rose 38% at the Components segment, 15% at Distribution, 13% at Power Systems and 7% at Engine. The company cited higher Components sales from axles and brakes, driven by the Meritor acquisition, as the main factor.

Source · Based on the MD&A text of the filing

Agreement in Principle and Effective Tax Rate of 48.3%

The company said its effective tax rate in 2023 was 48.3%, compared with 22.6% in 2022. It said the rate reflected the Agreement in Principle charge of $2.0 billion recorded in Q4. The company also said $1.732 billion of that charge, mainly penalties, is not deductible for tax purposes.

Source · Based on the MD&A text of the filing

Operating Cash Flow of $4.0 billion and Working Capital Changes

The company said it generated $4.0 billion of cash from operating activities in 2023, and net cash from operating activities rose $2.0 billion from the prior year. It said working capital requirements fell $3.4 billion and net income decreased $1.3 billion.

Source · Based on the MD&A text of the filing

Atmus IPO, Credit Facilities and Commercial Paper Balance

The company said that in May 2023 it exchanged its 19.5% stake, about 16 million shares, in the Atmus IPO at $19.50 per share and used the proceeds to repay $299 million of commercial paper. It said commercial paper outstanding was $1.496 billion as of December 31, 2023, and as a result the available capacity under its revolving credit facilities fell to $2.504 billion.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗

Unauthorized scraping, data storage and database creation prohibited

Without prior written consent, you must not crawl or scrape data compiled and organized by Chickstock or its analysis and summaries, or collect them repeatedly or in bulk for storage, ingestion or database creation. Repurposing, redistribution, sale and use to build other services are also prohibited.

Unauthorized use may result in access restrictions, demands to stop infringement and delete copies, and claims for damages. Violations of applicable law may also give rise to criminal liability.

Uses permitted by law, the Terms of Service or a separate agreement remain subject to their respective scope. Rights in individual source materials, including original filings, remain with their respective rights holders.