Engineering news
Digger manufacturer JCB has defied a slump in the global construction market to record the highest profits in its 67-year history.
The Staffordshire-based company saw its 2012 earnings rise to £365 million on turnover which remained virtually unchanged from the previous year at £2.7 billion.
Although the firm experienced weak construction equipment sales in some areas of the world, it saw business in Africa double and registered growth of 12% in the Middle East.
Announcing the results, Sir Anthony Bamford, chairman of JCB, said: "In view of the continued fragility of the global economy, which has led to renewed slowdowns in emerging and developed markets, JCB's results in 2012 are extremely encouraging.
"They not only demonstrate the resilience of our business, but highlight the importance of continued investment in products, facilities and customer service.
"While construction equipment markets in many parts of the world remained weak, that has been more than offset by strong growth for our agricultural products, particularly in materials handling."
Despite continuing uncertainty, particularly in European economies, 2013 had started satisfactorily, JCB said. Bamford added: "We are expecting some growth this year but how much will depend on the pace of the global recovery."
Last year's record results eclipsed earnings of £355 million in 2011. Figures for sales of machines also rose slightly to 69,250, from 69,100 in 2011, amid a global market which is estimated to have contracted by around 10%.
During 2012, JCB opened a new factory in Sao Paulo, Brazil and announced plans for a new £62 million plant in Jaipur, India, which is due to open next year.
Meanwhile, a report by consultancy Oxford Economics published this week has found that JCB supports an estimated 24,000 British jobs and generates around £1.4 billion of GDP.
The report, which was commissioned by JCB, analysed the company’s financial results, the impact of its research and development activities, as well as its role in the wider economy.
JCB's also paid £145 million in business taxes and income tax during 2011. Sam Moore, Director of Consulting at Oxford Economics, said: "JCB's focus on manufacturing high value-added products in the UK and exporting to overseas markets makes a huge contribution to the economy, particularly in terms of jobs and tax receipts."