International demand and Evoque boost JLR’s profits
STRONG sales in China and Russia have boosted volumes at Jaguar Land Rover by more than a fifth in the first nine months of the current fiscal year, Indian owner Tata Motors has said.
Pre-tax profit for the third quarter reached £559m – almost half of what Tata originally paid Ford in 2008 for the entire JLR operation.
During the first nine months of the 2011-12 year, the manufacturer, which makes its popular new Range Rover Evoque model at Halewood on Merseyside, sold 216,412 vehicles, a growth of 21.9% compared to the corresponding period last year.
The Evoque, which has won a clutch of awards, sold more than 32,000 units between its launch in July 2011 and the end of the year.
Group sales for the final quarter of 2011 were even more impressive and mirrored those elsewhere.
The three-month period saw vehicle sales rise by 36.7% to 86,322, the figure inflated by the overwhelmingly positive customer response to the Evoque.
JLR achieved revenues of £3.746bn – a rise of 40.9% over the £2.658bn in the corresponding quarter last year.
Operating margins for the quarter ended December 31, 2011, stood at 20.1%, with an operating profit (EBITDA) of £752m – a rise of 62.8% over the £462m recorded in the corresponding quarter last year.
Pre-tax profit for the quarter was £559m (2010: £300m), with post-tax profit reaching £440m (2010: £280m).
The period also saw JLR tie up the Revolving Credit Facility (RCF) with a consortium of banks for committed three to five year credit lines of £610m, which has since been upgraded to £710m.
“This will enable Jaguar Land Rover to have access to such funding as and when required and enable optimisation of cash balances, while strengthening the liquidity position,” said Tata.
