JCB sounds a note of caution despite 22% increase in turnover
DIGGER-GIANT JCB has revealed a record set of results after seeing turnover increase to £4.1billion.
Company bosses say the success of 2018 was down to strong growth in the construction market – and growing demand for agricultural machinery.
But the North Staffordshire-based firm – which has factories at Cheadle, Uttoxeter and Rocester – has sounded a note of caution for the next 12 months after seeing growth stall in some of its key overseas markets – including India, which was JCB’S largest market in 2018.
JCB CEO Graeme Macdonald said: “2018 was a very strong year for JCB during which the global construction equipment market grew by 18 per cent to an all-time high of one million machines.
“JCB outpaced this growth by increasing its sales revenue by 22 per cent last year, which was a very significant achievement.
“However, this growth has now stalled, with many markets softening this year, particularly the Middle East, Turkey, Latin America and India.
“We continue to make strategic investments in new product development and new manufacturing capacity to ensure JCB is ready to capitalise on future long-term growth opportunities.”
JCB’S latest results announcement show that, in 2018 the Rocester firm’s turnover rose by 22 per cent to £4.1billion – up from £3.35billion in 2017 – while machine sales increased to 96,246 from 75,693.
Earnings on an EBITDA basis also rose by 31 per cent to £447 million – compared to £341 million the previous year.
JCB has 22 factories around the world, including 11 in the UK.
The company is currently investing in a new £65million factory in Gujarat, India, which is due to open in 2020.
JCB is also spending £50million on a new factory to manufacture cabs for its machines. It is being built next to the A50 at Uttoxeter and is due to open in the autumn.
JCB chairman Lord Bamford said: “The continued growth in global markets during 2018 has seen JCB production reach new peaks.
“As we approach our 75th anniversary next year, the pace of innovation remains relentless.
“Recent product launches, especially JCB’S electric mini excavator, put the company in a strong position to tap into a growing demand for zero-emissions or ultra-low emissions equipment in the construction industry, particularly on urban job sites.”
JCB’S latest results announcement comes just months after the company laid off 130 agency workers from its Staffordshire factories.