JCB announce record profits for 2007
JCB have announced record pre-tax profits of £187 million for 2007 following the most successful year in the company’s 62-year history. The result was achieved in a year when machine sales rose to more than 72,000 and turnover reached a new peak of £2.25 billion.
JCB chairman Sir Anthony Bamford said: ‘2007 saw JCB make great progress and it was our best-ever year. The outlook for the remainder of 2008 does look challenging but I believe we are well-placed to adapt to these difficult conditions.’
Pre-tax profits for 2007 were 25% higher than the £149 million achieved in 2006, while sales rose by nearly 30% from £1.75 billion in 2006 and machine sales increased to record levels from the 2006 peak of 55,000 units.
Emerging markets provided the main source of business growth in 2007, particularly India, Poland, Russia, Bulgaria, Romania and South America, with new products and ranges accounting for 50% of the growth.
In addition, JCB say their share of the world construction equipment market rose to 12% in 2007, up from 10.4% the previous year. They also maintained their position as the world’s third largest construction equipment manufacturer by volume.
However, the company has warned of a tougher outlook for the rest of 2008 as the impact of the credit crunch and rapidly rising commodity prices take hold. JCB’s chief executive officer, Matthew Taylor, said trading conditions throughout 2008 would continue to be difficult because of the credit crunch.
‘There are signs that the downturn in the North American market is now spreading into some western European markets, and the recent high growth rates in some of the emerging markets are also now showing signs of slowing,’ he said.
Nevertheless, JCB say investment in new plants, products and customer support will continue at record levels to underpin future growth, including the construction of the £40 million Heavy Products factory in Uttoxeter; the new £7 million Attachments factory in Uttoxeter; and the future opening of a new £15 million parts centre and training facility in North America. The company will also launch 28 new products this year.
