JCB has achieved its third most profitable year in its 68-year history in 2013, the company announced. Earnings totaled $529 million on an EBITDA basis on volume of $4.53 billion, compared to $4.56 billion in 2012. JCB’s machine sales totaled 66,227 units, compared to 69,250 a year ago.
“The global market for construction equipment was more challenging throughout 2013, but I am delighted that, despite difficult market conditions, JCB delivered a strong performance and achieved the third highest profit in its history,” said JCB chairman Lord Bamford. “Turnover remained virtually unchanged year on year, but volume andwere adversely affected by a slowdown in emerging markets, notably India, where JCB has a strong presence. This was further compounded by adverse currency movements in some economies. Turnover growth in the U.K., Middle East and Africa during 2013 helped to offset reductions in India, Europe and the Far East.”
Lord Bamford added that 2014 has gotten off to a mixed start.
“Some markets are showing improvement, with stronger demand in the more developed markets of the U.K. and North America, which is offsetting weaker demand in the more fragile economies of Asia, Latin America and Russia,” he said. “Political uncertainty created by elections in India and Brazil is also having an impact on markets.”
JCB is going forward with plans to increase capacity globally, with the company’s latest Indian plant in Jaipur starting production in May. In the U.K., JCB is pressing ahead with a $253 million plan to expand operations in Staffordshire, creating an additional 2,500 jobs by 2018, with work due to start later this year on a new 350,000-square-foot plant for JCB Cab Systems in Uttoxeter. A new factory will also be built in Cheadle, Staffordshire.
JCB is headquarterd in Rocester, Staffordshire, U.K., with U.S. headquarters in Savannah, Ga.