Jaguar Land Rover posts its biggest ever quarterly loss of £3.4bn in the last quarter of 2018 as it adds a one-off £3.1bn write-down to a £273m loss.
The headline that Jaguar Land Rover has posted a loss for the last quarter of 2018 of £3.4bn is a startling fact – a sum almost twice what Tata paid for JLR a decade ago – but it is caused by write-downs rather than operational losses, although the actual losses for the last quarter of 2018 are still a sobering £273m.
The £3.1bn of the posted figures for the last quarter is the amount JLR has written off the value of its assets as it restructures and moves forward, recognising that big investments it’s made – for example in diesel engine production – will not now deliver the returns once expected.
Considering the perfect storm of woes engulfing JLR at the moment – from the damning of diesel to a slow down in China, from a loss of love for saloon cars to Brexit confusions – performance in the last quarter could have been a lot worse, with sales of £6.2bn down from £6.3bn and numbers down from 154k to 144k.
Ralph Speth, JLR CEO, said:
This is a difficult time for the industry, but we remain focused on ensuring sustainable and profitable growth, and making targeted investments, that will secure our business in the future.
Despite the woes, the big loss and job cuts, JLR is still investing in the future with investment in electric drive units and new battery assembly centre in the UK, has £2.5bn in the bank and an undrawn £1.9bn credit facility.
The headlines might look awful, but there’s substance to JLR’s future.