Jaguar-Land Rover Balances Lower Sales in China

Retail sales of 137,653 vehicles were 23% up on the previous year’s third quarter, with Jaguar sales increasing 30% to 23,841 units and Land Rover rising 22% to 113,812 units, marking the strongest quarterly sales performance in the company’s history. Demand in the top three regions was almost 50% above the same quarter a year ago, with Jaguar-Land Rover retail sales growth of 48% in Europe and North America and 47% in the UK. China was down 10% due to local market conditions and model transitions. Other overseas markets were up 6% overall.

Total revenues were £5.8 billion, 2% down on the same period of Fiscal 2014/15. The company reported Earnings Before Interest, Taxes, Depreciation and Amortisation(EBITDA) of £834 million, representing an EBITDA margin of 14.4% for the quarter. Although underlying earnings were down from the £1.1 billion reported for the same quarter of Fiscal 2014/15, EBITDA for the latest three month period was up from £589 million in the second quarter, with Jaguar-Land Rover offsetting the impact of less favourable mix and slower China sales through growth in other markets.

For the three months ending 31st December, 2015, Profit Before Tax was £499 million including a £30 million favourable exceptional item relating to the initial insurance payments for vehicles damaged in the 2015 Tianjin Port explosion. This compares to a Profit Before Tax of £685 million for the same period of last year, largely reflecting the change in EBITDA year-on-year, and is significantly improved from the exceptional pre-tax loss reported in the second quarter.

Dr Ralf Speth, Jaguar-Land Rover Chief Executive Officer, said:«We have reported solid revenues and profits in our latest financial quarter, reflecting very positive customer demand for our new and refreshed line-up of vehicles. With announcements of our plans to build a plant in Slovakia and double capacity at our UK Engine Manufacturing Centre, we have continued to invest for the long term. Jaguar-Land Rover remains well positioned to deliver sustained profitability as we maintain our consistent strategy to shape the future of the company.»