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JLR Reports a Loss as Revenue Slumps
Jaguar Land Rover Ltd.’s revenue in April-June fell 7%, and net income swung to a loss.
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Jaguar Land Rover Ltd. says revenue in its fiscal first quarter ended June 31 fell 7%, and net income swung to a loss.
Retail sales for the quarter climbed 6% to 145,500 cars and SUV. But revenue fell 7% to £5.2 billion ($6.8 billion). JLR blames most of the decline on a slump in consumer demand in China ahead of the country’s reduction in import tariffs from 25% to 10% on July 1.
Also contributing were unfavorable exchange rates, declining European demand for diesels and the cost of greater investment spending.
The company says its pretax loss for the quarter was £264 million ($346 million). That compares with an adjusted pretax profit of £158 million in the same period last year.
JLR predicts its sales and financial results will improve through the remainder of the fiscal year ending next March 31.
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