JCB deliver third highest ever profit in 2013

Company achieves third most profitable year in its 68-year history in tough market conditions

LAST year JCB achieved their third most profitable year in the company’s 68-year history. Earnings stood at £313 million on an EBITDA basis (2012: £365 million) on turnover of £2.68 billion (2012: £2.70 billion), while machine sales stood at 66,227 units (2012: 69,250).

JCB chairman Lord Bamford said: ‘The global market for construction equipment was more challenging throughout 2013 but I am delighted that, despite difficult market conditions, JCB delivered a strong performance and achieved the third-highest profit in the company’s history.’

According to Lord Bamford, turnover remained virtually unchanged year on year but volume and earnings were adversely affected by a slowdown in emerging markets, notably India, where JCB have a strong presence. This was further compounded by adverse currency movements in some economies.

However, turnover growth in the UK, Middle East and Africa during 2013 helped to offset reductions in India, Europe and the Far East.

‘2014 has got off to a mixed start,’ continued Mr Bamford. ‘Some markets are showing improvement, with stronger demand in the more developed markets of the UK and North America, which is offsetting weaker demand in the more fragile economies of Asia, Latin America and Russia. Political uncertainty created by elections in India and Brazil is also having an impact on markets.’

Meanwhile, JCB are forging ahead with long-term plans to increase capacity globally, with the company’s latest Indian plant in Jaipur starting production in May. In the UK, the company is pressing ahead with a £150 million plan to expand operations in Staffordshire, creating an additional 2,500 jobs by 2018, with work due to start later this year on a new 350,000 square foot plant for JCB Cab Systems in Uttoxeter. A new factory will also be built in Cheadle, Staffordshire.