JCB bullish with strong results

255 JCB reports strong financial performance despite the current tough trading conditions in most of the developing markets around the world. The firm says it has achieved underlying earnings of £214 million during 2015 despite the difficult market conditions and slower than expected growth in North American and European markets. According to JCB’s analysis, the global market for construction equipment dropped by 14% during 2015 overall. Market conditions in the first half of 2016 remain fragile with the exception of India, where there has been a return to growth after four successive years of market contraction.

JCB’s earnings for full-year 2015 on an EBITDA basis were US$282.4 million (£214 million) compared with $287.9 million for 2014 (£294 million). This was before one-off restructuring costs of $13.2 million (£10 million) and compared with restructuring costs of $14.6 million (£11 million) in 2014. Sales turnover was $3.09 billion (£2.34 billion) compared with $3.3 billion (£2.51 billion) for the previous year. Meanwhile total machine sales during 2015 were 59,844 units compared with 64,028 in 2014.

JCB CEO Graeme Macdonald said, “JCB’s trading performance during 2015 was resilient in the face of a further deterioration in market conditions around the world, particularly in the economies of Brazil, Russia and China. The global market is still uncertain and fragile during this year. ”

JCB Chairman Lord Bamford said, “In spite of difficult market conditions, we remain positive about the future. Recent product launches are proving to be very successful, particularly the revolutionary new JCB Hydradig, designed and engineered specifically for use in congested urban environments.”