JLR Q1 loss "consistent with outlook"
Jaguar Land Rover said its first fiscal quarter pre-tax loss of GBP395m was "consistent with the outlook provided for the quarter".
With industry volumes down in most regions, the UK based, Tata Motors owned automaker reported a year on year 11.6% decline in its global retail sales to 128,615 vehicles for the quarter but enjoyed record sales in the UK, up 2.6%, and a month on month rise in China.
Revenue was GBP5.07bn.
The pre-tax loss compared with GBP264m in red ink a year ago on quarterly revenue off 2.8% year on year.
"The results are consistent with the outlook for the quarter and primarily reflect lower revenues resulting from the weaker market conditions. Additional plant shutdown time and delays in WLTP certification resulting from Brexit contingency planning also contributed to the lower sales and profits," JLR said in a statement.
"Jaguar Land Rover is in a period of major transformation. We are simplifying our business, delivering on our product strategy and adapting to the tough market environment. We will build on our strong foundations and increased operating efficiency to return to profit this fiscal year," said CEO Ralf Speth.
JLR said its Project Charge provided GBP100m of cost savings and a GBP300m reduction to previously planned investment in the quarter and was on track to achieve GBP2.5bn of cash and profit improvements with GBP1.7bn achieved to date.
"Jaguar Land Rover reiterates that its financial results will improve over the balance of the year and continues to target a 3%-4% EBIT margin for the full year, with continued investment resulting in negative but improving cash flows," the automaker insisted.
"Despite challenging conditions in the first quarter, JLR is creating a more robust and resilient business in which we will continue to deliver a strong pipeline of products that our customers will love.
"Breakthrough products such as the exciting all new Land Rover Defender will pave the way for sustainable profitable growth."
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