JLR Expected To Accelerate Profit, Sales.
“We remain convinced the new Discovery, Velar and future products can drive higher JLR sales, margins and profits”
Investors expect Jaguar Land Rover (JLR) to improve sales and profits in the current year, thanks to its expanding product line in general and business in China in particular.
In the year ended March 31, pre-tax profit at JLR rose 3 per cent to £1.6 billion while sales jumped 9 per cent to £24.3 billion.
Bernstein Research analyst Robin Zhu said that period wasn’t a stellar one for JLR as margins declined and foreign exchange predictions went wrong.
“Looking ahead into fiscal 2018 however we see clear catalysts for renewed performance, driven by product expansion, rebounding China import mix and lower foreign exchange hedging losses,” Zhu said.
“We expect JLR’s new products to drive volume and profit growth. The Discovery began U.S. and China sales in June, while the Velar is due for launch by September. The Range Rover and Range Rover Sport facelifts should also help improve pricing on these models, and help support profits,” he said.
Zhu said compact and midsize premium SUVs continue to outperform the overall market.
“We believe the Velar and E-Pace can sell over 80,000 each, once production has ramped up fully, he said.
Jaguar announced the new compact E-Pace SUV in June.
“We expect JLR to reach consolidated sales of 732,000 by 2020, and 848,000 including China joint venture volumes. We remain convinced the new Discovery, Velar and future products can drive higher JLR sales, margins and profits,” Zhu said.
In fiscal 2017, JLR sales hit 604,009.