JCB’s underlying earnings for 2014 (on an EBITDA basis) saw a year-on-year decline.
The British equipment manufacturer achieved £303m last year, compared to £313 during 2013. The £303m does not take into account one-off restructuring costs of £11m.
The company’s sales turnover was £2.51bn, compared to £2.68bn the previous year, with machine sales dropping from 66,227 (2013) to 64,028 (2014).
JCB chairman Lord Bamford said that the slight year-on-year decline was due to lacklustre economies in BRIC countries. Commenting on the figures, he commented: “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.”
The construction equipment market in Brazil dropped by 17% in 2014, Russia fell by 27%, India by almost 15%, and China by 17%.
Western economies, meanwhile, helped to counter these declines. The UK and North America grew by 30% and 13% respectively. JCB’s sales in North America grew by 23%, outpacing the market and making it a record year for the company in the region. North America is now the manufacturer’s 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.”
Despite the year-on-year drop, 2014 was the fourth successive year during which JCB has achieved earnings in excess of £300m. The company has stated that it will continue to strengthen its facilities, both in the UK and farther afield.
“We continue to invest heavily in all areas of our business, despite the difficult markets, and this is the best demonstration of confidence in the future,” Lord Bamford concluded.
