JCB are digging deeper into the global machinery market

JCB has announced a rise in profits and sales despite encountering challenging conditions in the global machinery market.

The company’s earnings grew to £287 million in 2016, up from £214 on the previous year.

Sales increased to £2.62 billion from £2.34 billion over the same period.

In total, JCB sold 66,011 machines compared to 59,844 in 2015.

JCB chief executive Graeme Macdonald said: “JCB’s strong performance in 2016 was against some economic headwinds which saw the global construction equipment market shrink.

Some markets grew, such as India, which rose by almost 40 per cent, while others fell, including Brazil, which was down by more than 40 per cent.

The UK market contracted by five per cent in 2016 but the good news is that, after a difficult few years, European markets grew strongly and were up by more than 10 per cent last year.

JCB chairman Lord Bamford said: “While we face challenges in some parts of the world, the global construction market so far in 2017 is buoyant and expected to grow further during the remainder of this year.

We continue to launch innovative products and enter new sectors which will enable JCB to secure strong levels of growth in the future.

The UK market has got off to a particularly buoyant start this year, with housebuilding driving demand for compact and mid-range equipment, particularly telescopic handlers.

In addition there are some key infrastructure projects such as HS2 and Hinkley Point and Thames Tideway which are in the early stages of implementation, so customers are currently evaluating their fleet and machinery needs.

Road improvements and widening schemes acrosws the UK are also leading to increased demand for equipment.”

JCB employ around 5,400 workers at its factories in Staffordshire at Rocester, Cheadle and Uttoxeter.

In total, the company employs 12,000 workers on four continents and sales machinery in 150 different countries.

JCB was founded by Lord Bamford’s father Joseph Cyril Bamford in 1945 and today is one of the world’s top three construction machinery manufacturers.