Record earnings for JCB despite weak construction sector
STAFFORDSHIRE excavator manufacturer JCB has reported record annual earnings despite the muted state of the global construction sector.
The company, which has bolstered its position with a strong global footprint, saw EBITDA increase to £365m during 2012, up 2.8% on the previous year.
The Rocester-based firm said the performance had been helped by strong demand within its agricultural business.
The company, which announced earlier this month it was investing £1m in a new hotel for visitors to its HQ, sold 69,250 machines last year (2011: 69,100). Revenues were flat at £2.7bn.
Chairman Sir Anthony Bamford said he was pleased with the performance coming as it did at a time when the firm’s main markets – even those in the emerging economies of the BRIC countries – were facing tough times.
He said the figures represented the resilience of the business, which was able to offset weakened demand within the construction sector by growth in its agricultural products and materials handling divisions.
The company, as with so many other British manufacturers, has been hit hard by the situation in the Eurozone where reduced demand hit many of JCB’s major export markets.
However, Sir Anthony said that despite the upheaval, the company had made a sound start to 2013 and he predicted the firm would see some growth during the year although predictions were difficult and a lot would depend on the pace of global recovery.
