Tata-owned JLR H1 profits at more than 1 bn pounds
India's Tata-owned Jaguar Land Rover has powered to half-year profits of over 1 billion pounds for the first time, boosted by global demand for the new Jaguar F-Type and Range Rover Sport.
JLR said that it would invest 2.75 bn pounds in its products and facilities in the financial year to March 2014.
According to a report in the Telegraph, the UK-based car maker surprised analysts with a better than expected 42 pc rise in profits to top 1.08 billion pound for the six months to September 30.
In Britain, it is opening a new 500 million pound engine factory in Wolverhampton next year, with the creation of 1,400 jobs, while in September JLR announced plans for further expansion of its Solihull factory in Birmingham.
The company said it would invest 1.5 bn pounds to support a new range of sports cars and cross-over cars featuring the latest in lightweight aluminium technology, a spend expected to create another 1,700 jobs.
Including these latest jobs, JLR would have created almost 11,000 new posts in Britain over the past three years, the company said.
JLR s performance compensated for continuing losses in the standalone Tata car business.
The Indian company said: The weak operating environment in the India business was more than offset by the increase in wholesale volumes and richer product and market mix at Jaguar Land Rover.
JLR said the figures reflected strong demand for the new and refreshed Jaguar and Land Rover line up, lifted over the period by the sales debut of the Jaguar F-type and Range Rover Sport and a strong Range Rover performance .
Revenues jumped 26 pc to 8.71 billion pounds, with retail sales volumes rising 16 pc year on year to 197,363 units.
The sales momentum accelerated in the second quarter when revenues leapt 40 pc to 4.61 bn pounds, with profits before tax reaching 668 million. JLR made 1.68 bn pound profits on 15.8 bn pound revenues for the whole of its last financial year.
The latest figures highlight the transformation of a business under its Indian owners, who were widely decried for overpaying when Tata bought the business from Ford in 2008 for 1.15 billion pounds.
Ralf Speth, JLR s chief executive, said: Our unrelenting focus on design, technology, innovation and quality has seen Jaguar Land Rover reach global consumers in more markets than ever before, thanks to its most engaging product line-up.
Last month, JLR disclosed that it had achieved record sales in September, with Jaguar selling 8,462 vehicles, up 35 pc.
While the F-type introduction had boosted Jaguar sales, the group stressed at that time that there had been continued demand for all XF models and a solid performance from the XJ models.
The F-type Coup, dubbed the most dynamically capable, performance-focused Jaguar is due to make its debut on November 19, the eve of the Los Angeles auto show.
China has been driving demand for Jaguar cars this year, with sales up 218 pc in September and 122 pc in the first nine months of 2012.
JLR said at Land Rover there had been particularly impressive performances, over the same period from the Freelander and Range Rover Evoque models, with respective sales up 24 pc and 14 pc respectively.