JCB Earnings, Sales Down in 2013

May 12, 2014

JCB announced its 2013 financial results, with earnings totaling $529 million on an EBITDA basis ($616 million in 2012) on sales of $4.53 billion ($4.56 billion in 2012). JCB sold 66,227 machines in 2013, compared to 69,250 in 2012.

“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,” said chairman Lord Bamford.

“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 gotten 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.”

JCB is moving 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 $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-square-foot plant for JCB Cab Systems in Uttoxeter. A new factory will also be built in Cheadle, Staffordshire.