JCB announces new highs for 2018 but warns of weaker demand to come

UK equipment maker JCB has announced strong results for 2018, including new records for turnover, machine sales and earnings – but warns of declining trade in foreign markets in the future.

JCB outlined its 2018 earnings in a statement. These included:

  • Revenue of £4.1bn, a rise of 22% from 2017
  • Machine sales increased to 96,246, up from 75,693 in 2017
  • Pre-tax profit up 31% to £447m, compared with £341m in 2017

Graeme Macdonald, JCB’s chief executive, said: "2018 was a very strong year, during which the global construction equipment market grew by 18% to an all-time high of 1 million machines.

"Sales growth has now stalled, with many markets softening this year, particularly the Middle East, Turkey, Latin America and India. However, we continue to make strategic investments in new product development and new manufacturing capacity to ensure JCB is ready to capitalise on long-term growth opportunities."

JCB noted that India was the firm’s largest market in 2018, and said it planned to open a £65m factory in Gujarat next year. It also announced this year that it would invest $25m in Brazil.

Lord Bamford, JCB’s chairman, said: "Recent product launches, especially JCB’s electric mini excavator, put 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."

JCB currently has 22 factories around the world, 11 of which are in the UK.

Image courtesy of JCB

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