Carmaker Jaguar Land Rover says the devastating cyber attack that caused it to shut down production for weeks has contributed to pre-tax quarterly losses of £485m. Tony McDonough reports
Jaguar Land Rover (JLR) is reporting heavy losses and plummeting revenues during a period when it was hit by a devastating cyber attack.
In the three months to the end of September, the second quarter of its fiscal year, the carmaker said revenues fell 24% to £5.9bn. For the half year the figure was 16% lower year-on-year to £11.5bn. Pre-tax losses for the quarter came in at £485m and £134m for the half year.
At the end of August JLR was hit by a cyber attack which shut down production at factories in the UK, including Halewood in Merseyside where it employs 3,500 people, and overseas.
This shutdown lasted through September and into early October. The company says production is now back to normal but the company also had to spend another £196m on bringing in outside consultants and other support in response to the hacking attack.
JLR said it has also taken action to shore up its balance sheet with an additional £3.5bn liquidity backstop facilities secured.
As well as the cyber attack the auto giant also said US tariffs on cars exported from both the UK and Slovakia also had an impact, as did the phasing out of a number of Jaguar models.
Outgoing JLR chief executive Adrian Mardell said: “JLR has made strong progress in recovering its operations safely and at pace following the cyber incident. In our response we prioritised client, retailer and supplier systems and I am pleased to confirm that production of all our luxury brands has resumed.
“The speed of recovery is testament to the resilience and hard work of our colleagues. I am extremely grateful to all our people who have shown enormous commitment during this difficult time.
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“I want to thank our clients, retailers, suppliers and everyone in the communities connected with JLR, for their support through this disruption.
“As I approach the end of my 35‑year career at JLR, I am immensely proud of what we have achieved together.
“Leading JLR as CEO over the past three years has been the greatest honour of my career and I am confident that the next chapter will bring continued success for this great business under the leadership of PB Balaji.”