JCB profits fall 29%
Construction machinery manufacturer JCB manufacturer saw its underlying profits fall substantially in 2015 but its sales volume held up better than the market as a whole.
Overall, the global market for construction equipment dropped by 14% during 2015. By contrast, JCB’s sales turnover dropped just 7%, from £2.51bn in 2014 to £2.34bn in 2015.
Unit sales were down 6.5% to 59,844 machines and attachments sold (2014: 64,028).
Earnings for full-year 2015 on an EBITDA basis were down a more significant 29% to £214m (2014: £294m) excluding one-off restructuring costs of £10m (2014: £11m).
Growth in North American and European markets was slower than expected, the company said, and conditions in most developing markets around the world remain difficult. Market conditions in the first half of 2016 remain fragile with the exception of India, where there has been a return to growth after four successive years of market contraction.
JCB CEO Graeme Macdonald said: “JCB’s trading performance during 2015 was resilient in the face of a further deterioration in market conditions around the world, particularly in the economies of Brazil, Russia and China. The global market is still uncertain and fragile during this year. ”
Chairman Lord Bamford said: “In spite of difficult market conditions, we remain positive about the future.”
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This article was published on 22 Jul 2016 (last updated on 25 Jul 2016).