JCB unearths solid earnings in new markets as Europe falters

 
City A.M. Reporter
TRACTOR maker JCB will today report underlying profits up £10m to £365m for last year, as the firm weathered the ongoing slump in construction activity well.

The Staffordshire-based machinery firm’s revenues were broadly flat at £2.7bn during 2012, aided by rapid sales growth across Africa, the Middle East and the Americas that helped offset a rocky European market.

The firm has made efforts to expand in countries like Brazil and India in recent years to counteract a prolonged slump in building work across the debt-stricken Eurozone.

Last year the company unveiled new plans to spend £62m on a new manufacturing plant in Jaipur.

JCB, owned by the Bamford family, employs around 10,000 people worldwide, 6,000 of whom are based in the UK. It sells its machinery in more than 150 countries.

The group’s resilient performance contrasts with that of larger American rival Caterpillar, which in October issued a profit warning and in February announced its plans to cut thousands of jobs at one of its European factories in Belgium.