JLR reports annual loss for 2021-2022
Jaguar Land Rover made an annual pre-tax loss of £412 million in the year to the end of March.
The luxury car maker, which has its engine manufacturing centre at the i54 north of Wolverhampton, also suffered a £43m exceptional charge in the final quarter of the year for its business in Russia following the start of the war with Ukraine.
Russia and Ukraine normally account for 2.5 per cent of sales, but sales to Russia have been paused.
JLR said the impact on production has been limited to date as a result of active management of its parts supply chain. It has a relatively small number of parts that are sourced from the affected countries.
The annual loss compared to a £662 million profit for 2020-2021.
Sales in the final quarter of the year remained constrained by the global semiconductor shortage
Wholesales improved 11 per cent to 76,526 cars while the full year total of 294,182 was down 15 per cent. Retail sales for the quarter were 79,008 and for the year were down 14 per cent at 376,381.
Strong demand for the new Range Rover helped the order book to a new record of more than 168,000 with a rise of 13,000 in the January to March quarter. Orders for the new Range Rover have grown to 46,000, while demand for the Defender remains strong with 41,000 orders.
Revenue for the year was £18.3 billion – down seven per cent – with the final quarter delivering £4.8bn.
JLR ended the fiscal year with total cash and short-term investments of £4.4bn and total liquidity of £6.4bn.
Adrian Mardell, JLR's chief financial officer, said: "Despite the ongoing semiconductor supply constraints limiting production, we have delivered a second successive quarter of positive cashflow demonstrating our continuing focus on revenue optimisation and cost efficiencies. Despite the present chip supply, inflation and other challenges, our lower breakeven point should position us well as volumes gradually recover."
JLR expects the global semiconductor shortage to continue through the next fiscal year with gradual improvement. However, the Covid lockdowns in China as well as the new Range Rover Sport model changeover are expected to limit volume improvements in the first quarter
Thierry Bollore, JLR's chief executive, said: "The environment remains difficult in light of the global chip shortage and other challenges. However, I’m encouraged by the continuing strong customer demand for our products, highlighted by a record order book. And we are continuing to execute our Reimagine Strategy with exciting new products like the Defender, new Range Rover and just announced new Range Rover Sport while we are rapidly progressing our plans for a new generation of electric vehicles."