Aluminium shortage hits Q2 revenues and pre-tax profits at Jaguar Land Rover
Second quarter revenues and pre-tax profits have fallen at luxury car maker Jaguar Land Rover (JLR).
The manufacturer, which has plants in Halewood, Merseyside, and at Castle Bromwich and Solihull in the West Midlands, said it achieved an eighth successive proftitable quarter, despite a temporary aluminium supply constraint which restricted production in the quarter, to September 30, 2024.
Revenue for the quarter was £6.5bn, down 5.6% YoY, while first half revenue was flat YoY at £13.7bn
Pre-tax profit and exceptional items in the second quarter was £398m, down 10% YoY reflecting the temporary aluminium supply constraint. Production and wholesale volumes are expected to recover strongly in the second half of the year.
Profit after tax in the quarter was £283m, compared with a profit of £272m in the same quarter a year ago.
First half profits increased by 25% year‑on‑year to £1.1bn.
Free cash flow for the quarter was -£256m, again reflecting constrained production and wholesale volumes. At the end of the quarter, the cash balance was £3.4bn and net debt £1.2bn, with gross debt of £4.6bn.
Net debt improved by £1bn year‑on‑year, although it was £200m higher than Q1 FY25 due to the operating cash outflow in the period.
Total liquidity was £4.9bn, including the £1.5bn undrawn revolving credit facility, which has been recently refinanced at £1.6bn in October.
The group described the quarter as a “resilient performance”.
JLR said its full year guidance for revenue is unchanged at circa £30bn, alongside EBIT margin approximately 8.5% and achieving a positive net cash position.
More than 2,900 orders have been taken for the recently launched Defender OCTA, retailing at £145,000.
The next stage in Jaguar’s transformation is to be revealed at the Miami Art Week on December 2, 2024.
JLR said its new Range Rover Electric continues to generate strong global interest with more than 48,000 clients signed up to the waiting list
Also, 11,000 Range Rover SV and Range Rover Sport SV models have been sold since launch, including the new Range Rover Sport SV Edition Two, launched in Q2 FY25, and a collection of five Range Rover Sport SV Celestial models retailing at c.£215,000.
JLR’s Range Rover SV Ranthambore Edition was launched in India with all 12 units sold at £455,000
More than £250m has been invested to date ‑ of a total £500m ‑ for electric vehicle production at the Halewood facility, including several kilometres of new EV production lines and automated robots.
EPMC in Wolverhampton is now producing new V8 engines to offer Range Rover and Range Rover Sport clients the full range of ICE, PHEV and BEV powertrains in line with client demand.
And development of the JLR and China-based Chery joint venture Freelander brand is progressing well, JLR said.
Renewable energy equipment installation is under way at the Halewood facility to remove 40,000 tonnes of CO2e, alongside reuse of £16m-worth of equipment from JLR’s Castle Bromwich site.
CEO, Adrian Mardell, said: “JLR has delivered a resilient performance in Q2, resulting in a 25% increase in first half profits year‑on‑year.
“Our teams responded brilliantly to the aluminium supply shortages we experienced in the quarter, so we could deliver as many orders as possible to clients.”
He added: “We continue to make good progress delivering our Reimagine strategy. We have invested £250m so far to prepare our Halewood UK plant for electric vehicle production and with strong global demand for our products, we are well positioned to deliver on our commitments again this financial year.”
