JCB remained profitable during 2008 despite the sharp deterioration in market conditions in the global construction equipment industry, the company has announced.
JCB recorded pre-tax pre-exceptional profits of £39 million last year on a turnover of £2 billion. With total sales of 57,000 machines and a global market share of 10.8%, JCB remains the world’s third largest construction equipment brand. The company also retains its position as the world’s number one manufacturer of backhoe loaders, with more than a third of the market.
A bright spot in 2008 was JCB Agriculture, which achieved a sixth successive year of growth, with sales up by more than 14% on the back of an agricultural sector that held up far better than the global construction equipment market, which shrank by 15% during 2008.
JCB announced its annual results as the company also confirmed it was expanding its global excavator production capacity with the opening of a new assembly plant in Brazil where the production of JCB’s 400,000th backhoe loader was also marked yesterday at a special ceremony.
Commenting on JCB’s 2008 results, Chairman Sir Anthony Bamford said: “After several years of growth, 2008 was very challenging for the construction equipment industry. JCB responded quickly to the downturn by taking difficult decisions to ensure production remained aligned to demand. These actions ensured we remained profitable and the ongoing cost reduction programme at JCB means the company is set to emerge from the downturn stronger, leaner, fitter and more successful than before. This will mean JCB can continue to invest in its products and factories, which is vital to meet the demanding requirements of our customer base.
“World markets have continued to decline in 2009 but JCB’s sales have not fallen at the same rate which means we are continuing to gain market share in some key markets, including the UK and Ireland, Germany, Brazil and Russia and the CIS.