JCB Reports Record Profit in 2007

The JCB Group has reported record pre-tax profit for 2007, recording earnings of $374 million on worldwide revenue of $4.5 billion in 2007, making it the most successful year in the company’s history. JCB reported sales of more than 72,000 machines last year.

Meanwhile, company officials caution that the impact of the credit crunch, combined with rapidly rising commodity prices, specifically that of oil and steel, will pose an economic challenge for 2008.

“2007 saw JCB make great progress. It was our best year ever,” says John Patterson, chairman and CEO of JCB Inc. “The outlook for the remainder of 2008 does look challenging, but I believe we are well positioned to adapt to these difficult conditions.”

JCB’s 2007 pre-tax profits were 25 percent higher than the $298 million recorded in 2006. Sales rose by nearly 30 percent above the $3.5 billion achieved in 2006.

The company attributes most of its business growth to activity in emerging markets, particularly India, Poland, Russia, Bulgaria and South America. New machines and new product ranges accounted for 50 percent of sales growth.

JCB has also announced that Patterson has decided to step down as worldwide CEO to become chairman and CEO of JCB Inc. He will concentrate on developing the business in North America, the world’s largest market for construction equipment. Matthew Taylor, JCB’s chief operating officer, will succeed him as CEO.

More information is available at www.jcb.com.