Jaguar Land Rover loses $6.7 billion during financial year

Adjust Comment Print

The annual figures were heavily-impacted by a £3.1bn write down in the third quarter, to cover falling demand for newer models, as well as for diesel-powered cars.

Jaguar has posted its first profit in quite some time, as the financial quarter ending on March 31 brought in a net income of $151.6 million.

The auto manufacturer, which has already announced thousands of job cuts in the United Kingdom in the first months of 2019, made the loss after a £400m profit in 2018. The losses were largely due to a one-off £3.1 billion (RM16.47 billion) write-down in the value of its investments in property and machinery, which were worth far less than previously thought, according to news reports.

Jaguar Land Rover also saw unit sales jump in the United Kingdom and in north America, which went up by 8.4 percent and 8.1 percent respectively during the year.

"In JLR, we continue to face challenges in China which we are addressing on priority".

Revenues of £7.1 billion were down £421 million year-on-year.

Hundreds march against Alabama abortion ban
Women hold signs as they gather to march to the Capitol for women's rights, Sunday, May 19, 2019, in Montgomery, Ala. After being raped by a co-worker two years ago, Samantha Blakely had an abortion .

But on a quarterly basis JLR's ability to turn a profit will likely cheer investors, many of whom will have been expecting a fourth-straight loss for this financial year.

The company launched a £2.5 billion turnaround programme earlier this year and has spent more than £149 million on redundancy costs to date.

In a statement issued with today's financial results, JLR gave an update of the cost-cutting measures, which included the loss of around 1,000 contractor jobs in April previous year and the subsequent announcement - in January - that it will cut 4,500 more jobs, with the substantial majority coming from its 40,000 strong United Kingdom workforce.

Taking extraordinary items out, the company had an operating loss of £358 million ($667 million) during the last financial year.

In the United States, around 2,300 jobs will go.

Speth said that restructuring programme has already resulted in £1.25 billion of efficiencies, and made the firm "one of the first companies in its sector to address the multiple headwinds simultaneously sweeping the automotive industry". Speth continued that JLR will "go forward as a transformed company that's leaner and fitter", and that the sustained investment in new products and technologies will drive future demand.