Figures analysis show JLR on up

BUSINESS reporter Alistair Houghton analyses the Jaguar Land Rover’s latest figuresIT MAY seem odd Tata Motors should proclaim the success of Jaguar Land Rover (JLR) while revealing the company will report a six-monthly loss, but the underlying figures do show a company on the up after years of losses.

Tata Motors has released these JLR profit figures as part of a prospectus designed to attract investors to buy more shares in the business on the Bombay Stock Exchange.

Unsurprisingly, the media in India and beyond have scoured these figures and reported on the $383m (£207m) loss JLR will report for the first six months of the year. But Tata is keen to stress JLR is actually on the up after years of under performance.

It says the loss was caused by tax-write-offs and that on a day-to-day basis the company is operating profitably.

Tata itself issued a "clarification" yesterday after reports in the Indian press suggesting JLR was performing badly, saying it believed the half-year operating profit figure of $688m (£372m) was more representative of JLR’s performance.

In its statement it said: "Adjustments and provision for tax figures... primarily relate to Ford consolidation or accounting adjustments and hence are not reflective of JLR’s business performance."

Full year profit of £351m in 2007 compared to a £193m operating loss in 2006 and a £269m operating loss in 2005 – there is a clear upward trend. Despite the head- line loss we are re- porting today, JLR does now seem to be a profitable business again.

But despite the headline loss we are reporting today, JLR does now seem to be a profitable business again.