Midlands digger manufacturer JCB enjoyed its best-ever year in 2007 as sales and global market share rose to all-time highs, it revealed yesterday.
And it is continuing to invest despite being caught up in the fall-out from the global credit crunch.
JCB's turnover increased to a record £2.25 billion compared to £1.75 billion in 2006.
The success was achieved as the company sold more than 72,000 machines, another record which saw year-on-year sales increase by 30 per cent - 18 per cent above the market growth.
At the same time, its share of the world construction equipment market rose to 12 per cent, up from 10.4 per cent in 2006.
India overtook the UK as JCB's single largest market with sales of more than 17,000 machines, up from 10,800 machines in 2006.
While JCB retained its position as the world's third largest construction equipment manufacturer by volume, it closed the gap on second place.
Caterpillar and Komatsu remain huge. JCB retained its position as the world's number one backhoe manufacturer, producing one out of every three machines sold globally. It was also the world number one manufacturer of telescopic handlers in 2007.
The news was announced as JCB unveiled 21 new products, including tracked excavators, mini excavators, telescopic handlers and skid steer loaders, at the Conexpo construction equipment show in Las Vegas, to bring its total machine line-up to 290 machines.
JCB managing director and chief executive John Patterson said: "Our business has doubled in four years, with sales increasing from 36,000 machines in 2004 to 72,000 last year.
"This is an outstanding achievement and testament to the hard work of the JCB workforce and dealers worldwide. This growth has been fuelled by the continuous development of new products and a £100 million investment to ensure we have the right manufacturing capacity in the right locations around the world."
Emerging markets proved to be the main source of business growth during 2007.
JCB said it had seen significant growth in markets such as India, Bulgaria, Romania, Poland, Russia and South America.
New products and ranges accounted for 40 per cent of the total JCB sales increase, and the company increased its network to 670 dealers and 1,500 depots worldwide.
However, JCB said there were concerns that the sector could be further affected by the credit crunch and the downturn in North America, where the market fell by 13 per cent during 2007.
It noted: "European economies are expected to come under pressure as the combined impact of slowing exports to the US and tighter, higher cost credit takes effect. In particular, the impact is expected to be felt in the house building market to which construction is so closely linked.
"Despite those concerns, JCB is forging ahead with its investment in global production facilities during 2008."
It is investing £30 million to double capacity at its backhoe loader production facility near Delhi in India - due for completion later this year. Tracked and wheeled excavator production in the UK is also set to significantly expand following a £40 million investment in a new Heavy Products factory. And the company is about to open a new £7 million JCB Attachments factory in Uttoxeter, Staffordshire.
It is to create additional service parts distribution capacity at its World Parts Centre, also in Uttoxeter; a new warehouse in Moscow for the fast growing Russia and CIS markets; the construction of a new parts centre and training facility at JCB's North American headquarters in Savannah and the opening of a new service parts warehouse and service training facility in Pune, India.
JCB Group chief operating officer Matthew Taylor said: "The industry has been strong during 2007, but our growth has not been totally dependent on market growth - we have grown faster than the market. But there is nervousness and uncertainty for 2008."
