Q3 revenues dip for Jaguar Land Rover as China slows
SLOWER sales in China depressed third quarter earnings for Jaguar Land Rover although latest figures out today show the manufacturer’s sales up 23% compared with the previous year’s Q3.
In the three months to December 31, 2015, retail sales stood at 137,653 vehicles, with Jaguar sales increasing 30% to 23,841 units and Land Rover rising 22% to 113,812 units.
It is the strongest quarterly sales performance in the company’s history.
Demand in the top three regions was almost 50% above the same quarter a year ago, with retail sales up 48% in Europe and North America and 47% in the UK. China was down 10% over the period, which the company has blamed on local market conditions and model transitions. Other overseas markets were up 6% overall.
However, total revenues were 2% down on the same period in 2014/15 at £5.8bn.
The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of £834m, representing an EBITDA margin of 14.4% for the quarter.
However, underlying earnings were down from the £1.1bn reported in Q3 2014/15.
EBITDA for the latest Q3 period was up from £589m in the second quarter as the company offset the impact of less favourable mix and slower Chinese sales with growth in other markets.
At the end of the three-month period, pre-tax profit was £499m – including a £30m favourable exceptional item relating to the initial insurance payments for vehicles damaged in the Tianjin Port explosion last August. This compares to a pre-tax profit of £685m for the same period in 2014/14. The company said this largely reflected the change in EBITDA year-on-year, but was significantly improved from the exceptional pre-tax loss reported in the second quarter.
Dr Ralf Speth, CEO, Jaguar Land Rover, said: “We have reported solid revenues and profits in our latest financial quarter, reflecting very positive customer demand for our new and refreshed line-up of vehicles.
“With announcements of our plans to build a plant in Slovakia and double capacity at our UK Engine Manufacturing Centre, we have continued to invest for the long term.
“Jaguar Land Rover remains well positioned to deliver sustained profitability as we maintain our consistent strategy to shape the future of the company.”
