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Staffordshire-based construction equipment manufacturer JCB has reported a reduction in profits because of a slowdown in global construction markets.
The privately-held company's profits, best known for its heavy machinery diggers, were 14% down last year from the £365 million of profit it made in 2012. JCB's profits were £313 million in 2013, with 66,227 machines sold, around 3,000 less than in 2012.
JCB's 2012 profits were the highest in the firm's 68 year history, while last year's was the third highest.
The company said it had been hit by a slowdown in the construction markets of emerging economies, particularly in India, which is one its biggest markets.
Anthony Bamford, chairman of JCB, said: “Turnover growth in the UK, Middle East and Africa during 2013 helped to offset reductions in India, Europe and the Far East.”
“2014 has got off to a mixed start. Some markets are showing improvement, with stronger demand in the more developed markets of the UK and North America, which is offsetting weaker demand in the more fragile economies of Asia, Latin America and Russia.”
“Political uncertainty created by elections in India and Brazil is also having an impact on markets.”
Depsite diminishing demand, the company said it would push ahead with its expansion plans. A new factory opens in Jaipur, India, this month. The Jaipur factory, which is on a 115 acre site, is the company's fourth in India. It also has factories in Ballabgarh, Haryana near New Delhi and in Pune. The plants produce cranes, tracked excavators, wheeled loaders and compactors to the India sector as well as Eastern Africa, the Middle East and South-East Asia.
The company also plans to build another 350,000 square foot plant at its headquarters in Uttoexter, Staffordshire, creating 2,500 jobs in the UK by 2018. Work on the factory is planned to begin this year.