The worldwide pc chip scarcity that compelled manufacturing to be reduce at Jaguar Land Rover led the automotive large to submit a lack of greater than £400m for its newest monetary yr.
JLR has reported a pre-tax lack of £455m together with an distinctive cost of £43m throughout its fourth quarter for its enterprise in Russia.
That compares to the £662m revenue, earlier than distinctive gadgets, within the 12 months to March 31, 2021.
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The producer stated its manufacturing and gross sales had been “considerably impacted” by the worldwide chip scarcity.
Income additionally fell by 7% to £18.3bn within the yr to March 31, 2022.
JLR has UK websites in Whitley, Gaydon, Solihull, Manchester, Citadel Bromwich, Wolverhampton and Halewood.
Throughout its fourth quarter, JLR’s income rose 1% to £4.8bn in comparison with the prior three months.
The EBIT margin within the quarter was 2% with its pre-tax revenue about breakeven (£9m) earlier than the £43m distinctive cost for its enterprise in Russia.
Retail gross sales within the fourth quarter totalled 79,008, down 1% on the third quarter “as a consequence of constrained wholesales and low seller inventories”.
Wholesales for the complete yr have been 294,182, down 15% in comparison with the prior yr whereas retail gross sales have been 376,381, down 14%.
JLR stated it expects the worldwide semiconductor scarcity to proceed by means of the subsequent fiscal yr “with gradual enchancment”.
Nevertheless, it added that the Covid lockdowns in China in addition to the brand new Vary Rover Sport mannequin changeover are anticipated to restrict quantity enhancements in Q1, “probably leading to adverse EBIT and adverse money flows within the quarter”.
Chief monetary officer Adrian Mardell stated: “Regardless of the continued semiconductor provide constraints limiting manufacturing, we’ve delivered a second successive quarter of optimistic cashflow demonstrating our persevering with concentrate on income optimisation and value efficiencies.
“Regardless of the current chip provide, inflation and different challenges, our decrease breakeven level ought to place us nicely as volumes progressively get better.”
Chief government Thierry Bollor é added: “The surroundings stays tough in mild of the worldwide chip scarcity and different challenges.
“Nevertheless, I’m inspired by the persevering with sturdy buyer demand for our merchandise, highlighted by a report order guide.
“And we’re persevering with to execute our Reimagine Technique with thrilling new merchandise just like the Defender, New Vary Rover and simply introduced New Vary Rover Sport whereas we’re quickly progressing our plans for a brand new era of electrical autos with our all electrical Jaguar technique and BEV first EMA platform for brand new Land Rover merchandise.”