JCB has today announced a rise in earnings of over 34% in 2016 – a contrast in fortunes to the global market as a whole.
The English-founded machinery manufacturer revealed that earnings for 2016 on an EBITDA (earnings before interest, tax, depreciation and amortisation) basis were £287 million (€321.99 million). This is a sizable jump from 2015, when earnings were £214 million (€240.09 million).
Sales turnover increased by almost 12% to £2.62 billion; a rise of €280 million on 2015 levels. According to the British firm, this was in spite of the worldwide market for construction equipment shrinking by 1% last year.
Meanwhile, machine sales for the company rose by 6,167 products to 66,011 on 2015 sales.
JCB Chief Executive Officer, Graeme Macdonald, said: “JCB’s strong performance in 2016 was against some economic headwinds which saw the global construction equipment market shrink.
“Some markets grew, such as India which rose by almost 40%, while others fell, including Brazil which was down by more than 40%.
The UK market contracted by 5% in 2016 but the good news is that, after a difficult few years, European markets grew strongly and were up by more than 10% last year.
JCB Chairman, Lord Bamford, also referred to the latest results, noting: “While we face challenges in some parts of the world, the global construction market so far in 2017 is buoyant and is expected to grow further during the remainder of this year.
Lord Bamford outside JCB Headquarters, Rocester, Staffordshire.
Image source: Anita Maric / newsteam
“We continue to launch innovative new products and enter new sectors, which will enable JCB to secure strong levels of growth in the future.
The UK market has got off to a particularly buoyant start this year, with house-building driving demand for compact and mid-range equipment, particularly telescopic handlers.
The chairman also highlighted ongoing key infrastructure projects such as: HS2, the UK’s planned high-speed railway; Hinkley Point nuclear plant; and Thames Tideway, the wastewater tunnel system under the River Thames.
All are in the early stages of implementation, so customers are currently evaluating their fleet and machinery needs, Lord Bamford said. He added: “Road improvements and widening schemes across the UK are also leading to increased demand for equipment.”
