FOURTH CONSECUTIVE QUARTER LOSS FOR JAGUAR LAND ROVERDate: 2019-02-08
Jaguar Land Rover has posted its 'biggest-ever' loss of £273m, after four-quarters in a row result in an asset value fall of £3.
Jaguar Land Rover (JLR) has posted its fourth consecutive quarter results and the figures don't look good. Financial losses worth £273m between September and December 2018 off revenues of £6.2bn, following JLRs declaration of £90m worth of losses for the fiscal quarter ending in September 2018, and a loss of £264m in the preceding quarter, is bad news.
The significant adjustment downward to £3.1bn of the company’s balance sheets pre-tax was a significant loss. Notable factors de-valuing JLR's worth could include assets such as factories and inventory, not to mention intellectual property rights – which likely lead to the “muted demand scenario” the company has experienced lately.
Basically, what we're talking about here is a 10 per cent reduction of JLR’s total assets of 2017/18's of £27bn. That equates to a 6.8 per cent decline on the 144,602 cars sold, especially in the key Chinese market, which cancels out the growth within Europe and America.
Speaking to the media, Dr. Ralf Speth, JLR’s chief executive, partially blamed: “challenging market conditions in China” for the disappointing financial results, but felt JLR’s “Charge and Accelerate” transformation programme was positive enough that the “efficient and resilient” programme of JLR would create roughly £2.5bn in savings over 18 months.
That's great news for keeping the prices for vehicles from escalating but, most likely, really poor news for the 4,500 jobs JLR announced are redundant. And, then there's the graduate programmes they're publishing to attract new staff as we speak... it's all very crazy.