From correspondents in Delhi, India, 10:34 PM IST

JCB today announced record pre-tax profits of $ 366 million for 2007 following the most successful year in its 62-year history. The result was achieved in a year when machine sales rose to more than 72,000 and turnover reached a new peak of $ 3.5 billion. JCB also announced that John Patterson, who has led the company through an unparalleled period of growth, is to be succeeded as CEO by Chief Operating Officer Matthew Taylor.

JCB Chairman Sir Anthony Bamford said: “2007 saw JCB make great progress and it was our best-ever year. The outlook for the remainder of 2008 does look challenging but I believe we are well-placed to adapt to these difficult conditions.”

The pre-tax profits for 2007 were 25% higher than the $ 292 million achieved in 2006. Last year sales rose by nearly 30 per cent from $ 3.43 billion and machine sales increased to record levels from the 2006 peak of 55,000 units. Emerging markets provided the main source of business growth in 2007, particularly India, Poland, Russia, Bulgaria, Romania and South America. New products and ranges accounted for 50 per cent of the growth.

In 2007, JCB’s share of the world construction equipment market rose to 12 per cent, up from 10.4 per cent in 2006. JCB also remained the world’s third largest construction equipment manufacturer by volume.

Under John Patterson leadership, JCB’s business has doubled in the past four years and the company has undergone the biggest global expansion in its history with new manufacturing facilities brought on line in the USA, Brazil, India, China and Germany. Matthew Taylor, 48, will take up his new role of CEO from June 1st. He joined JCB in April 2006 as Managing Director of JCB Sales and in January last year became Group Chief Operating Officer.

JCB Chairman Sir Anthony Bamford said: “John Patterson has led the JCB Group through one of the most successful periods in our history and I’m pleased that he will now focus his attention on our American business based in Savannah. The JCB Group is facing some difficult challenges as we enter a period of economic uncertainty but I look forward to the next phase of our growth and development and these changes will help drive that.

But the company is warning of a tougher outlook for the rest of 2008 as the impact of the credit crunch and rapidly rising commodity prices take hold. JCB CEO Matthew Taylor said: “Trading conditions throughout 2008 will continue to be difficult because of the credit crunch. There are signs that the downturn in the North American market is now spreading into some western European markets. The recent high growth rates in some of the emerging markets are also now showing signs of slowing.”

JCB’s investment in new plants, products and customer support continues at record levels to underpin future growth, with the construction of the $ 78.31 million JCB Heavy Products factory in Uttoxeter; the new $ 13.70 million JCB Attachments factory in Uttoxeter, a $ 70.48 million extension to its Backhoe Loader plant in New Delhi, India and the future opening of a new $ 29.37 million parts centre and training facility in Savannah, USA. JCB is also launching 28 new products in 2008.

Source: Press Release Distribution via India PRwire