British global heavy equipment manufacturer JCB says 2012 was the best year in its 67-year history, with earnings reaching a new record.
Earnings rose to $584 million on an EBITDA basis (earnings before interest, taxes, depreciation and amortization) — compared to $568 million in 2011. Revenue remained virtually unchanged at $4.3 billion.
In a global market that contracted by 10 percent, the company’s sales of its equipment also rose slightly — from 69,100 units in 2011 to 69,250 in 2012 — meaning JCB outperformed the market once again.
Pooler is the home for JCB’s North American headquarters and includes a 500,000-square-foot, state-of-the-art manufacturing facility set on 1,064 acres. The $62 million plant is part of a $100 million investment by JCB in the Savannah area.
In addition to the manufacturing facility, the campus has a large demonstration area and training facilities.
In 2010, JCB retooled its Pooler plant to engineer, design and produce all JCB skid steer loaders for worldwide distribution, bringing production back up and nearly tripling a workforce once crippled by recessionary layoffs.
Now, skid steer loaders represent more than 60 percent of the construction equipment market in North America and nearly 40 percent of the construction market worldwide.
John Patterson, North American chairman and CEO of JCB, said the the group results are encouraging, particularly in a market that contracted 10 percent last year.
“I am especially proud of the contribution from our North American team on the JCB Group’s success,” Patterson said.
“In North America, we achieved a 50 percent increase in machine retails, which fueled a 55 percent increase in revenue. This is largely due to the success of the range of skid steer loaders being produced here in Savannah, our team of dedicated people and the strength of our distribution network.”
JCB Chairman Sir Anthony Bamford said 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,” Bamford said.
“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 continued uncertainty, particularly in European economies, 2013 has started satisfactorily. We are expecting some growth this year but how much will depend on the pace of the global recovery.”
JCB’s business in Africa doubled last year and increased 20 percent in the Americas. JCB also saw growth of 12 percent in the Middle East.
In 2012, JCB retained its position as the No. 1 construction equipment manufacturer in the U.K., Europe and in India, and it remains the No. 1 manufacturer of backhoe loaders and telescopic handlers.
In 2012, JCB opened a new factory in Sao Paulo, Brazil, and announced plans for a new $99 million facility in Jaipur, India. That facility, due to open next year, will be JCB’s fourth Indian manufacturing plant.
