Carmaker Jaguar Land Rover saw third quarter profits hit £439m as its recovery from the COVID-19 crisis continues apace. Tony McDonough reports
Jaguar Land Rover (JLR) says it is one track to make £2.5bn of savings this financial year as third quarter profit before tax hit £439m.
JLR, which employs around 4,000 people at the Halewood factory in Merseyside producing the Land Rover Discovery Sport and Range Rover Evoque models, said the profit figure was up £374m on the second quarter and £121m up on a year ago.
Revenues for the three months to December 31 came in at £6bn. While is is £1.6bn up on the previous quarter it remains below pre-COVID levels a year ago. The carmaker also reported positive free cash flow of £562m, a Q3 record.
Profit and cash improvements from the Project Charge+ transformation programme in the quarter were £400m, including £200m of cost and £200m of investment efficiencies. Savings year-to-date total £2.2bn, and the company is on track to deliver the £2.5bn target for the full year ending March 31, 2021.
JLR sold 128,469 vehicles in the quarter, up 13.1% on Q2 but still 9% lower than pre-COVID levels a year ago. Sales in China were up 20% on the prior quarter and up 19.1% year-on-year.
Most other regions were also up on the preceding quarter while down from the prior-year third quarter. Sales of the new Land Rover Defender grew to 16,286 units, a 66% increase on the prior quarter.
Adrian Mardell, JLR’s chief financial officer, said: “We are pleased to report these strong profits and record third quarter cash flows. It reflects our focus on prioritising profitable sales and delivering cost and cash improvements.
“While sales have not yet fully recovered to pre-COVID levels in most markets, it was pleasing to see China sales up year-on-year for the second quarter in a row and sales of the new Defender continuing to grow.”