North America Leads the Way as JCB Records Record Earnings in 2012
JCB said at Bauma last week that 2012 was the best year in the company’s 67-year history, with record earnings of £365 million (about U.S. $560 million) on an EBITDA basis, topping 2011’s £355 million. Revenue remained about the same at £2.7 billion. JCB said its machine retails totaled 69,250, up from 69,100 in 2011.
JCB’s business in Africa doubled in 2012 and increased 20 percent in the Americas, with North America leading the way at 28 percent. JCB also grew its business by 12 percent in the Middle East. The company said it remained the number one construction equipment manufacturer in the U.K., Europe and in India, and remained the top manufacturer of backhoe loaders and telescopic handlers.
In 2012, JCB opened a new factory in Sao Paulo and announced plans for a new £62 million facility in Jaipur, India, which will be the company’s fourth in India. JCB expects to open the plant in 2014.
“In view of the continued fragility of the global economy, which has led to renewed slowdowns in emerging and developed markets, JCB’s results in 2012 are extremely encouraging,” said chairman Sir Anthony Bamford. “They not only demonstrate the resilience of our business, but highlight the importance of continued investment in products, facilities and customer service.
“While construction equipment markets in many parts of the world remained weak, that has been more than offset by strong growth for our agricultural products, particularly in materials handling. Despite continued uncertainty, particularly in European economies, 2013 has started satisfactorily. We are expecting some growth this year, but how much will depend on the pace of the global recovery.”
Breaking down the business results in greater detail at Bauma, chief operating officer Graeme MacDonald said North America business has now grown 77 percent in two years. Also growing in 2012 was Brazil, which increased by 9 percent; Russia by 15 percent; the CIF countries by 18 percent; Latin America 10 percent. On the other hand, business decreased in China as well as India, which dropped 7 percent. Europe declined by 4 percent, the U.K. by 6 percent. More problematic was Southern Europe, MacDonald said, where business plunged 45 percent in Spain, 31 percent in Italy and 30 percent in Portugal.
RER will report on JCB’s product offerings at Bauma in an upcoming issue.
