JCB weathers BRICs downturn
By Chris Sleight18 May 2015
JCB’s earnings before interest, tax, depreciation and amortisation (EBITDA) for 2014 was UK£ 303 million (US$ 475 million), a slight fall on 2013’s figure of UK£ 313 million (US$ 490 million). This came on the back of revenues which were down -6.3% to UK£ 2.51 billion (US$ 3.93 billion). The company added that it sold 64,028 machines last year, compared to 66,227 in 2013.
JCB chairman Lord Bamford said, “For different reasons each of the ‘BRIC’ markets of Brazil, Russia, India and China were sharply down in 2014. However, the broad spread of our business enabled us to benefit from better conditions in North America, Western Europe and particularly the UK.”
JCB said the construction equipment market in Brazil dropped -17% in 2014, Russia fell by -27%, India by almost -15% and China by -17%. Markets in the UK and North America grew by +30% and +13% respectively. The company added that its sales in North America grew +23% - outpacing the market and making it a record year for JCB in North America, which it said is its third biggest market behind India and the UK.
Lord Bamford added, “Global market uncertainty has continued into 2015, though our home market of the UK remains a rare bright spot. The need for infrastructure in much of the developing world remains acute and will eventually drive a resumption of growth. Our resilient performance in 2014 demonstrates we are well placed to capitalise on improving trends as they emerge."