JCB hails 'strong' performance despite £50m profits slide
Staffordshire's iconic digger company JCB today revealed its profits were down more than £50 million on the previous year - although they are still one of the highest figures in the firm's history.
Profit for 2013 was £313 million, down on 2012's record-breaking £365 million, but still the third strongest figure in JCB's 68-year history.
The slump came as the firm was hit by a slowdown in emerging countries, particularly India.
Sales were virtually flat at £2.68 billion, as JCB sold 66,227 machines around the world – 3,000 less than the year before.
But JCB was bullish about prospects for the 2014 and revealed that the UK was its fastest growing market with sales up 50 per cent so far this year.
Chairman Lord Bamford, son of JCB's founder, said today: "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 its history.
"Turnover remained virtually unchanged year-on-year but volume and earnings were adversely affected by a slowdown in emerging markets, notably India, where JCB has a strong presence. This was further compounded by adverse currency movements in some economies.
"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. 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 is 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, JCB 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 sq ft plant for JCB Cab Systems in Uttoxeter. A new factory will also be built in Cheadle, Staffordshire, while the cab making plant at Rugeley will eventually move to a newly-built factory around 15 miles away, moving its existing workforce there.
