JCB announces record profit in 67-year history
JCB's chief operating officer Graeme Macdonald announcing record profits
JCB has announced the best results in its 67-year history with earnings reaching a new record.
While turnover for 2012 remained virtually unchanged at £2.7 billion, profit rose by £10m to £365m on an earnings before interest, taxes, depreciation, and amortisation (EBITDA) basis.
Machines sales increased slightly to 69,250 units (from 69,100 in 2011). According to chief operating officer Graeme Macdonald, the company retained its position as the number one construction equipment manufacturer in the UK, Europe and in India, and it remained the number one manufacturer of backhoe loaders and telescopic handlers.
These results came despite what JCB said was 10% contraction in global machine market last year with China dropping by 37% and India by 7%, although Russia and Brazil increased by 16% and 9% respectively.
Europe saw a 4% decline in volume, although North America recorded a 28% increase.
Macdonald added: “While construction equipment markets in many parts of the world remained weak, that has been more than offset by strong growth for our agricultural products, particularly in materials handling. Despite continued uncertainty, particularly in European economies, 2013 has started satisfactorily. We are expecting some growth this year but how much will depend on the pace of the global recovery.”
In 2012 JCB opened a new factory in Sao Paulo, Brazil and announced plans for a new £62 million facility in Jaipur – JCB’s fourth Indian manufacturing plant – which is due to open in 2014.