JCB reported in May that it achieved its third most profitable year in its 68-year history in 2013. Earnings stood at $529 million on an EBITDA basis (2012: $616 million) on turnover of $4.53 billion (2012: $4.56 billion). JCB’s machine sales stood at 66,227 (2012: 69,250).
“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," said JCB Chairman Lord Bamford. "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.
While 2014 has gotten off to a mixed start, JCB reports that 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.
JCB is moving forward 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 $253 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.
