JCB remain profitable in difficult market
JCB say they managed to remain profitable last year despite the sharp deterioration in market conditions in the global construction equipment industry. The company recorded pre-tax, pre-exceptional profits of £39 million in 2008 on a turnover of £2 billion.
With total sales of 57,000 machines and a global market share of 10.8 %, JCB remain the world’s third largest construction equipment brand. The company also retains its position as the world’s number one manufacturer of backhoe loaders, with more than a third of the market.
A bright spot last year was JCB Agriculture, which achieved a sixth successive year of growth, with sales up by more than 14% on the back of an agricultural sector that held up far better than the global construction equipment market, which shrank by 15% in 2008.
Commenting on the 2008 results, JCB chairman Sir Anthony Bamford said: ‘After several years of growth, 2008 was very challenging for the construction equipment industry. JCB responded quickly to the downturn by taking difficult decisions to ensure production remained aligned to demand. These actions ensured we remained profitable and the ongoing cost-reduction programme at JCB means the company is set to emerge from the downturn stronger, leaner, fitter and more successful than before.
‘World markets have continued to decline in 2009 but JCB’s sales have not fallen at the same rate, which means we are continuing to gain market share in some key markets, including the UK and Ireland, Germany, Brazil and Russia and the CIS.’
JCB have also confirmed that they are to expand their global excavator production capacity with the opening of a new assembly plant adjacent to the company’s existing backhoe loader plant in Sorocaba, Brazil.
‘Since JCB began manufacturing in Brazil nearly a decade ago, we have made significant strides in growing our market share in the country and in the Latin American region,’ said JCB chief executive officer Matthew Taylor. ‘The time is now right to build on that position and invest in an excavator assembly plant to better serve the South American market.’
News of the expansion in Brazil comes in the year when full production of tracked and wheeled excavators began at the new £40 million JCB Heavy Products factory in Uttoxeter, Staffordshire, where a range of 25 different machines are manufactured.
JCB also produce excavators in Pune, India, where a plant was opened in 2007 as part of a £25 million investment in Indian manufacturing.
With total sales of 57,000 machines and a global market share of 10.8 %, JCB remain the world’s third largest construction equipment brand. The company also retains its position as the world’s number one manufacturer of backhoe loaders, with more than a third of the market.
A bright spot last year was JCB Agriculture, which achieved a sixth successive year of growth, with sales up by more than 14% on the back of an agricultural sector that held up far better than the global construction equipment market, which shrank by 15% in 2008.
Commenting on the 2008 results, JCB chairman Sir Anthony Bamford said: ‘After several years of growth, 2008 was very challenging for the construction equipment industry. JCB responded quickly to the downturn by taking difficult decisions to ensure production remained aligned to demand. These actions ensured we remained profitable and the ongoing cost-reduction programme at JCB means the company is set to emerge from the downturn stronger, leaner, fitter and more successful than before.
‘World markets have continued to decline in 2009 but JCB’s sales have not fallen at the same rate, which means we are continuing to gain market share in some key markets, including the UK and Ireland, Germany, Brazil and Russia and the CIS.’
JCB have also confirmed that they are to expand their global excavator production capacity with the opening of a new assembly plant adjacent to the company’s existing backhoe loader plant in Sorocaba, Brazil.
‘Since JCB began manufacturing in Brazil nearly a decade ago, we have made significant strides in growing our market share in the country and in the Latin American region,’ said JCB chief executive officer Matthew Taylor. ‘The time is now right to build on that position and invest in an excavator assembly plant to better serve the South American market.’
News of the expansion in Brazil comes in the year when full production of tracked and wheeled excavators began at the new £40 million JCB Heavy Products factory in Uttoxeter, Staffordshire, where a range of 25 different machines are manufactured.
JCB also produce excavators in Pune, India, where a plant was opened in 2007 as part of a £25 million investment in Indian manufacturing.
