Profits soar at JCB but warning of market challenges ahead

Profits at Staffordshire construction equipment manufacturer JCB rose to £805.8 million in 2023, the company announced this morming – up nearly £250 million on the previous year.

Sales turnover grew to £6.5 billion and machine sales also increased to 123,228.

However, company bosses have warned of uncertain times ahead with conditions in the UK and Europe set to be particularly challenging.

The JCB Group, which has factories and business interests around the world, maintained a strong balance sheet with no net borrowings throughout 2023. 

 JCB CEO Graeme Macdonald said: “Despite a global market for construction and agricultural machinery which shrank by 4.3% in 2023, JCB’s sales increased by 14% to £6.5 billion.

“North America remains the world’s largest market for construction equipment and JCB’s sales there grew strongly during 2023. JCB’s business in India also performed well in a growing market and while the UK market remained largely flat in 2023, JCB increased its share of the market.”

Graeme added: The full year market outlook for 2024 is less positive, with challenging conditions in the UK and Europe, particularly in Germany where economic activity has declined sharply during 2024. In the UK, housebuilding activity has contracted, which is having a negative impact on machine utilisation.”

How JCB’s 2023 figures compare to the previous 12 months:

 JCB Chairman Lord Bamford said: “Our family company continues to invest both in new production capacity and in product innovation.

“Earlier this year, we broke ground on our new factory in San Antonio, Texas. The company’s ongoing investment in innovative new machines, such as the recently launched JCB Pothole Pro designed to tackle the global scourge of potholes, together with our continued focus on the development of hydrogen combustion engines for our equipment in the future, puts JCB in a strong position for further long-term growth.”