JCB announce return to robust earnings

Company makes strong recovery from recession but remains mindful of economic concerns

JCB, who this week celebrate their 65th anniversary, have reported a strong recovery from the deepest-ever recession in the global construction equipment industry with a return to robust earnings.

In 2010, the company’s earnings before interest, tax, depreciation and amortization (EBITDA) reached £235 million (2009: £94.5 million), while sales increased by 48% to £2.0 billion (2009: £1.35 billion). Last year JCB sold 51,600 machines, compared with 36,000 machines in 2009.

Commenting on the results, JCB chairman Sir Anthony Bamford said: ‘We started 2010 cautiously optimistic about trading prospects and I’m delighted that our optimism was rewarded with a very strong result for the year.

‘The pace and strength of the recovery varied by market. Growth was strongest in the ‘BRIC’ countries and other developing economies, but some established markets, notably the UK and Germany, also performed satisfactorily.’

Sir Anthony continued: ‘2011 has also started well for the JCB Group but we are still mindful of economic concerns which could hold back the recovery. We continue to invest in our manufacturing facilities, notably this year in India and Brazil, and in new products, with 13 machines launched so far in 2011.’

In 2011, JCB will be investing more than £20 million in modernizing and increasing capacity at their 11 UK plants. The company is also investing in a new 350,000 sq ft factory in Sao Paulo, Brazil, for the manufacture of backhoe loaders and tracked excavators. The plant will become operational in early 2012. The company has also opened an engine manufacturing plant in India which went into production this year.