Mexican Media Brands
Profit Growth Stalls As JLR Sells More Small SUVs
Tata Motors Ltd.'s Jaguar Land Rover unit estimates that its operating income flattened in the fiscal third quarter ended Dec. 31 because of unfavorable exchange rates and a less profitable vehicle mix.
#economics
Share
Tata Motors Ltd.'s Jaguar Land Rover unit estimates that its operating income flattened in the fiscal third quarter ended Dec. 31 because of unfavorable exchange rates and a less profitable vehicle mix.
JLR tells the U.S. Securities and Exchange Commission that earnings before interest, taxes, depreciation and amortization in the October-December period probably matched EBIT in the two preceding quarters.
The success of the Land Rover Evoque small SUV launched in September 2011 has dramatically boosted the company's volume. But it also has been squeezing JLR's return on sales since last April, Bloomberg News notes.
The Evoque, which starts at 29,200 ($46,300), now accounts for almost 30% of the brand's global sales. Evoque profit margins are slimmer than those of the 71,300 ($113,000) Range Rover and the 50,200 ($79,500) Range Rover Sport.
The British unit says its cash flow was probably negative in the latest quarter. JLR also predicts a cash drain in the fiscal year that begins on April 1 as the company boosts capital spending 38% to 2.8 billion ($4.4 billion) to fund vehicle development and a plant in China.
RELATED CONTENT
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.