JCB looks to dig themselves out of hole of global slowdown

JCB delivered a “resilient” performance despite the slowdown in Brazil, Russia and China continuing.

The volume of machine sales was down 7% last year, to 59,844, which resulted in a similar fall in turnover to £2.34bn.

However EBITDA – earnings before interest, tax, depreciation and amortisation, a measure of profitability – was down 27% to £214m.

JCB chief executive 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.”

The company said it “faced difficult market conditions in most developing markets” around the world and slower than expected growth in North American and European markets.

It pointed to a 14% fall in the global market for construction equipment during 2015, and said that, with the exception of India, market conditions in the first half of 2016 remained fragile. 

JCB chairman Lord Bamford added: “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.”