UK construction equipment manufacturer 255 JCB reports lower sales than in the previous financial year. Sales turnover slid to €3.46 billion (£2.51 billion) compared with the €3.69 billion (£2.68 billion) achieved in the previous year. The firm recorded machine sales of 64,028 units, compared with 66,227 in 2013. Overall JCB says that despite improvements in some Western markets, falls in other sales territories hit overall business. The company also faced a one off restructuring cost of €15.14 million (£11 million). The firm did achieve underlying earnings in excess of €412.92 million (£300 million) while earnings for 2014 on an EBITDA basis were €417.09 million (£303 million), compared with €430.85 million for 2013 (£313 million).
The reason for the drop in sales has been attributed to poor market conditions in Brazil, Russia, India and China, the BRIC territories that have been strong performers in previous years. JCB chairman Lord Bamford said, “However, the broad spread of our business enabled us to benefit from better conditions in North America, Western Europe and particularly the UK.”
The construction equipment market in Brazil dropped by 17% in 2014, Russia fell by 27%, India by almost 15% and China by 17%. Markets in the UK and North America grew by 30% and 13% respectively. JCB’s sales in North America grew by 23% - outpacing the market and making it a record year for JCB in North America, which is now the company’s third biggest market behind India and the UK.
Lord Bamford added: “Global market uncertainty has continued into 2015, though our home market of the UK remains a rare bright spot. The need for infrastructure in much of the developing world remains acute and will eventually drive a resumption of growth. Our resilient performance in 2014 demonstrates we are well placed to capitalise on improving trends as they emerge.”
Since 2010, JCB has created 2,000 new jobs at its 11 UK plants, boosting employment levels to 6,000. Globally, the company now employs 12,500 people. JCB is currently investing in UK manufacturing by increasing production capacity at its World HQ in Rocester, Staffs. The company also completed a new factory development in Jaipur, India in 2014 costing €85.34 million (£62 million) and construction of a new €25 million (£18.16 million) HQ for JCB Germany is also underway. Lord Bamford added, “We continue to invest heavily in all areas of our business despite the difficult markets, and this is the best demonstration of our confidence in the future”.
The reason for the drop in sales has been attributed to poor market conditions in Brazil, Russia, India and China, the BRIC territories that have been strong performers in previous years. JCB chairman Lord Bamford said, “However, the broad spread of our business enabled us to benefit from better conditions in North America, Western Europe and particularly the UK.”
The construction equipment market in Brazil dropped by 17% in 2014, Russia fell by 27%, India by almost 15% and China by 17%. Markets in the UK and North America grew by 30% and 13% respectively. JCB’s sales in North America grew by 23% - outpacing the market and making it a record year for JCB in North America, which is now the company’s third biggest market behind India and the UK.
Lord Bamford added: “Global market uncertainty has continued into 2015, though our home market of the UK remains a rare bright spot. The need for infrastructure in much of the developing world remains acute and will eventually drive a resumption of growth. Our resilient performance in 2014 demonstrates we are well placed to capitalise on improving trends as they emerge.”
Since 2010, JCB has created 2,000 new jobs at its 11 UK plants, boosting employment levels to 6,000. Globally, the company now employs 12,500 people. JCB is currently investing in UK manufacturing by increasing production capacity at its World HQ in Rocester, Staffs. The company also completed a new factory development in Jaipur, India in 2014 costing €85.34 million (£62 million) and construction of a new €25 million (£18.16 million) HQ for JCB Germany is also underway. Lord Bamford added, “We continue to invest heavily in all areas of our business despite the difficult markets, and this is the best demonstration of our confidence in the future”.
