JCB flying the flag for British manufacturing
JCB maintained profitability in 2009 despite the deepest ever recession in the global construction equipment industry. The Rocester-based company saw its sales drop by a third to £1.35 billion but was able to increase pre-tax profit marginally to £29 million (2008: £28 million).
In the face of a global market which fell by 46% in 2009 and with total sales of 36,000 machines, JCB say they managed to increase their market share to an all-time high of 12.2%, reinforcing their position as the world’s third-largest construction equipment manufacturer.
The company also improved its market-leading position in backhoe loaders, taking more than 40% of the global market, and attained world market leadership with its Loadall telescopic handler range, with a 28% share.
‘Last year was hugely challenging for the construction equipment industry, but the entire JCB organization pulled together magnificently to respond decisively to the unprecedented downturn, which was particularly severe in the first half of 2009,’ said JCB chairman Sir Anthony Bamford.
‘Tough action was taken to adjust our cost base to align it to a much reduced level of demand, and this resulted in an improving profit trend as the year progressed. We have created a strong platform for renewed profitable growth.’
Sir Anthony added that, in the first half of 2010, the construction equipment industry had seen a ‘strong recovery’ in emerging markets such as India, Brazil and China, although the traditional markets of Western Europe and North America remain weak.
‘On balance, we expect to see a significant improvement in both sales and profits this year compared to 2009,’ he said.
JCB have now embarked on a £20 million investment in a new generation of their iconic backhoe loader. The first of the new eco-range of the British-built diggers rolled off the company’s Staffordshire production line in Union Jack colours and went on display at Hillhead 2010 before embarking on a tour of famous London landmarks to celebrate its launch.
The JCB 3CX Eco and JCB 4CX Eco backhoe models will go into full production next month and will offer a machine which uses up to 16% less fuel than its predecessor – saving customers who use the digger for an average 1,250h a year more than £1,000 in fuel costs.
In the face of a global market which fell by 46% in 2009 and with total sales of 36,000 machines, JCB say they managed to increase their market share to an all-time high of 12.2%, reinforcing their position as the world’s third-largest construction equipment manufacturer.
The company also improved its market-leading position in backhoe loaders, taking more than 40% of the global market, and attained world market leadership with its Loadall telescopic handler range, with a 28% share.
‘Last year was hugely challenging for the construction equipment industry, but the entire JCB organization pulled together magnificently to respond decisively to the unprecedented downturn, which was particularly severe in the first half of 2009,’ said JCB chairman Sir Anthony Bamford.
‘Tough action was taken to adjust our cost base to align it to a much reduced level of demand, and this resulted in an improving profit trend as the year progressed. We have created a strong platform for renewed profitable growth.’
Sir Anthony added that, in the first half of 2010, the construction equipment industry had seen a ‘strong recovery’ in emerging markets such as India, Brazil and China, although the traditional markets of Western Europe and North America remain weak.
‘On balance, we expect to see a significant improvement in both sales and profits this year compared to 2009,’ he said.
JCB have now embarked on a £20 million investment in a new generation of their iconic backhoe loader. The first of the new eco-range of the British-built diggers rolled off the company’s Staffordshire production line in Union Jack colours and went on display at Hillhead 2010 before embarking on a tour of famous London landmarks to celebrate its launch.
The JCB 3CX Eco and JCB 4CX Eco backhoe models will go into full production next month and will offer a machine which uses up to 16% less fuel than its predecessor – saving customers who use the digger for an average 1,250h a year more than £1,000 in fuel costs.
