Jaguar Land Rover marches to £439 million pre-tax profit in third quarter

Jack Evans, PA Motoring Reporter

Jaguar Land Rover (JLR) has posted pre-tax profits of £439 million for the final quarter of 2020.

Representing an increase of £374 million on the previous quarter and £121 million year-on-year, the profits for the third quarter of its fiscal year (October-December 2020) were its best-ever third quarter on record for cash flow.

Car sales for the third quarter of the year totalled 128,469 vehicles, up 13.1 per cent on the second quarter but still down nine per cent on pre-Covid levels.

Sales in China swelled by 20 per cent compared with the previous quarter and 19.1 per cent year-on-year. The introduction of its new Defender last year saw sales of 16,286 units, an increase of 66 per cent on the prior quarter.

In total, JLR generated £6bn in revenue for the quarter, growing by £1.6bn on the second fiscal quarter but down by £300m on the same period in 2019.

Thierry Bolloré, Jaguar Land Rover Chief Executive Officer, said: “I am encouraged by the improved financial performance in this first full quarter as CEO of Jaguar Land Rover. This performance is a credit to the outstanding efforts of the employees of Jaguar Land Rover to overcome many challenges this year and I would like to thank every one of our colleagues for their contribution, particularly those who are working safely in our plants and facilities.

“Looking ahead, these challenges continue, including the Covid pandemic and its impact on the global economy, the UK’s new trading relationship with the EU and the significant technological changes taking place in the automotive industry. In this environment, I’m working with my management team on plans to realise an exciting future for Jaguar Land Rover, which I look forward to sharing in due course.”

JLR’s Project Charge+ plan has saved the company £2.2bn in the year to date, too.

Free cash flow for the company stood at £562m, with cash and short-term investments totalling £4.5bn. Total liquidity was £6.4 billion inclusive of a £1.9bn undrawn revolving credit facility.

Jaguar Land Rover has introduced many revised models in order to bring hybrid and plug-in hybrid powertrains into its line-up. The F-Pace and XF have both been recently updated, while the electric I-Pace currently tops Jaguar’s alternatively-fuelled offerings. In total, some 20 electrified cars are included across the firm’s portfolio of vehicles.

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