Turnover, sales volume and profits rise as company outpaces global growth in a strong market
JCB has announced that its financial results for 2018 hit new records, with substantial increases in turnover, machine sales and earnings.
The UK-based construction equipment heavyweight revealed that its sales turnover in 2018 rose to $4.96bn, an increase of 22%, while machine sales went up to 96,246 from 75,693 in 2017. Earnings on EBITDA basis rose by 31% to $541m. JCB attributed the positive results mainly to global markets remaining strong for construction equipment and agricultural machinery.
JCB CEO Graeme Macdonald said: “2018 was a very strong year for JCB during which the global construction equipment market grew by 18% to an all-time high of one million machines. JCB outpaced this growth by increasing its sales revenue by 22% last year, which was a very significant achievement.”
JCB chairman Lord Bamford said: “The continued growth in global markets during 2018 has seen JCB production reach new peaks. As we approach our 75th anniversary next year, the pace of innovation remains relentless. Recent product launches, especially JCB’s electric mini excavator, puts the company in a strong position to tap into a growing demand for zero-emissions or ultra-low emissions equipment in the construction industry, particularly on urban job sites.”
India remained JCB’s largest market in 2018 and this year marks the 40th anniversary of JCB India, with the company investing $78.6m in a new factory in Gujarat, which is due to open next year. JCB is also investing $60.5m in a new factory to manufacture cabs for its machines in its home base of Staffordshire, UK, which will open in autumn this year. The company has 22 factories around the world, including 11 in the UK.
While declaring the new record results, JCB also sounded a word of caution, however, with Macdonald saying growth had now stalled, with many markets, particularly the Middle East, Turkey, Latin America and India, softening this year. “We continue to make strategic investments in new product development and new manufacturing capacity to ensure JCB is ready to capitalise on future long-term growth opportunities,” he added.