JLR's Q2 profits hit by aluminium supply problems
By Benjamin Chiou
Date: Friday 08 Nov 2024
(Sharecast News) - Second-quarter profits at auto giant Jaguar Land Rover fell by a tenth as the Coventry-based manufacturer was hit by aluminium supply constraints, though things are expected to pick up in the second half.
JLR reported an adjusted pre-tax profit of £398m for the three months to 30 September, down 10% on last year, while revenues fell 11% to £6.5bn. EBIT margins were down 2.2 percentage points at 5.1%.
The company said results were affected by lower wholesales as supply disruptions from a key aluminium supplier held back production, while a temporary hold was placed on more than 6,000 vehicles to allow for additional quality control checks.
Nevertheless, pre-tax profits for the first half of the financial year as a whole were still 25% higher than the previous year at £1.10bn, as revenues were steady at £13.7bn.
Looking ahead, the manufacturer maintained its full-year guidance for revenues of £30bn and EBIT margins of 8.5% or above, predicting a "strong" acceleration in both production and wholesale volumes "as the aluminium supply situation normalises, and we will continue our diligent management of costs".
Chief executive Adrian Mardell labelled the second-quarter performance as "resilient", saying that the company "responded brilliantly to the aluminium supply shortages we experienced in the quarter, so we could deliver as many orders as possible to clients".
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