Carmaker Jaguar Land Rover reports profits of £265m for the third quarter of its fiscal year as computer ship shortage finally eases. Tony McDonough reports
Jaguar Land Rover (JLR) is reporting a return to profit in the third quarter of its fiscal year as the global semiconductor chip shortages ease.
JLR says pre-tax profits for the three months to December 31 were £265m. This is against a loss of £9m in the same period in 2021 and a loss of £173m in the second quarter of its current fiscal year, the three months to September 30.
Revenues for the third quarter were £6bn – up 28% year-on-year and a rise of 15% against the previous quarter.
In spring 2021, JLR was forced to temporarily suspend production at its factory in Halewood in Merseyside due to the semiconductor shortage. Around 3,700 people at the plant assemble the Range Rover, Evoque and the Land Rover Discovery Sport models.
Despite a strong global demand for its vehicles JLR was unable to get cars out of the door in sufficient volumes and this hit sales, leading to fiscal losses.
However, in early January JLR said it was finally on top of the chip supply issue. Wholesale volumes for the third quarter were 79,591 units excluding the Chery Jaguar Land Rover China joint venture). This is a rise of 5.7% compared to the prior quarter. It was 15% higher than the same quarter a year ago.
The company says there continues to be strong demand for its vehicles. It delivered 85,000 cars to customers in the third quarter while taking 95,000 new orders. Three most profitable models were the New Range Rover, New Range Rover Sport and Defender.
Its Refocus transformation programme has delivered £850m in savings year to date and is on track to deliver £1bn of savings this financial year.
Adrian Mardell, JLR’s interim chief executive, said: “Jaguar Land Rover has returned to profit as chip shortages eased in the quarter and production and wholesales increased.
“These improved results are testament to the hard work and dedication of our people across the business.
“We remain committed to our Reimagine strategy which will transform JLR into an all-electric modern luxury business, whilst delivering our SBTi climate goals and striving to exceed our clients’ expectations.”