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Jaguar Land Rover boosts pre-tax profit

By Graeme Roberts | 9 August 2017

Jaguar Land Rover revenue for the first fiscal quarter ended 30 June 2017 was GBP5.6bn, up GBP244m, parent Tata Motors announced.

Profit before tax was GBP595, up from GBP399 million in Q1 2016, including a GBP437 million one-off credit relating to recent changes designed to improve the sustainability of the company's defined benefit pension plans. This was offset by the expected seasonality of sales in Q1 following a strong Q4 of 2016/17, plus the continuation of launch and growth costs.

Retail sales for the quarter reached 137,463 vehicles, up 3.5% on the previous year led by the Jaguar F-Pace (up 86% year on year), following a sequence of successful market launches. Continuing strong demand was seen for well-established models such as the flagship Range Rover (up 14%) and Jaguar XF (up 22%), reflecting the successful launch of the long wheelbase model in China.

Sales were up year on year in China (30%) and North America (16%), while remaining stable in Europe (no change) and down in the UK (14%) including the timing impact of new vehicle excise duty rates introduced in April 2017.

CEO Ralf Speth said: "The foundation of our journey of sustainable, profitable growth continues to be our investment in products, plants and people as we become a technology-driven company. We continue to deliver rising volumes and revenues across the business."