After exceptional charges, Tata Motors’ Jaguar Land Rover reported a pre-tax loss of £ 952m in the final quarter and £ 861m in the 2020/21 fiscal year.
In February 2021, the company announced a new global strategy. This will result in an exceptional cost of £ 1.5 billion in the fourth quarter. This includes a non-cash write-down of £ 952m of the previous investment and a restructuring cost of £ 534m to be paid in 2021/22. ..
JLR posted pre-tax earnings of £ 534m in the fourth quarter and £ 662m for the full year.
The EBIT margin increased to 7.5% in the fourth quarter and 2.6% for the full year.
Fourth-quarter sales were £ 6.5bn, up 20.5%. This was driven by strong sales in China and global sales of the new Land Rover Defender.
The Charge + program saved £ 332m in cost and cash flow in the fourth quarter, increased year-round savings to £ 2.5bn and total lifetime to £ 6bn.
Automakers said the business continued to recover after the COVID-19 pandemic, with retail sales in the fourth quarter up 12.4% year-on-year to 123,483 units. This was supported by a strong recovery in China, where sales increased 127% compared to the fourth quarter of last year, when the impact of COVID peaked in the market. Sales in China increased 23.4% year-on-year, but retail sales of 439,588 units for the full year remained down 13.6%. The new Land Rover Defender contributed significantly to retail sales, with 16,963 units sold in the fourth quarter and 45,244 units sold throughout the year.
“We are pleased to continue improving cash flow and profitability in the fourth quarter despite the ongoing challenges of COVID-19 in both retailers and the supply chain. 7.5% in the fourth quarter. Achieving the EBIT margin was particularly satisfying. Full-year cash flow was positive. Performance improvements were due to successful efforts to improve sales quality and the cost structure of the business and cash flow from Project Charge +. It reflects our focus on promoting the market, “said CFO Adrian Mardel.
The company said rising COVID vaccination rates are driving the final recovery of the global economy and the automotive industry from the effects of the pandemic. However, many markets are still more likely, especially with semiconductor supply chain problems becoming more difficult to mitigate, affecting production plans for the first quarter. The company works closely with affected suppliers to resolve issues and minimize customer impact.
For fiscal year 2021/22, Jaguar Land Rover expects sales to continue to recover. The company is targeting an EBIT margin of at least 4.0% and break-even free cash flow after approximately 2.5 billion GBP of investment and restructuring costs of approximately 500 million GBP already incurred.
Strategic changes cause JLR fourth quarter and full year losses | Automotive Industry News
Source link Strategic changes cause JLR fourth quarter and full year losses | Automotive Industry News