JCB saw 2009 sales drop by a third to GBP1.35 billion (USD2.061 billion) but still managed to increase its pre-tax profit through cost-cutting measures.

Selling a total of 36,000 machines - compared to 57,000 in 2008, JCB increased its pre-tax profit to GBP29 million (USD44.3 million) from GBP28 million (USD42.8 million) the previous year.

Company chairman Anthony Bamford says the whole of JCB pulled together to respond to a challenging year, which was particularly severe in the first half. "Tough action was taken to adjust our cost base to align it to a much-reduced level of demand and this resulted in an improving profit trend as the year progressed," he says. JCB made about 1,800 redundancies last year.

JCB intelligence shows that the global construction equipment market fell 46% in 2009 but the company increased its marketshare to an all-time high of 12.2%. It now has over 40% of the global backhoe loader market and 28% of the global telehandler market.

JCB claims it is now the world market leader in telehandlers with its Loadall range. JCB spokesman Nigel Chell tells Forkliftaction.com News that the company's closest competitor for the telehandler market is Ancenis, France-based Manitou.

Bamford says that the construction equipment industry in the first half of 2010 saw a "strong recovery" in emerging markets like India, Brazil and China although Western Europe and North America remain weak. "On balance, we expect to see a significant improvement in both sales and profits this year compared to 2009."

"Despite the economic difficulties, we continued to invest in new products with 11 innovative machines launched so far this year, including the most fuel-efficient backhoe loader we've ever produced," he adds.

One of JCB's largest investments in its history was announced this year - the GBP80 million (USD121.5 million) project to develop a combustion system for a new diesel engine that will be used in telehandlers and other equipment. The company hopes to produce the off-highway sector's cleanest engine with its JCB Ecomax T4 4.4 litre engine, which will go into production in 2012 (Forkliftaction.com News #454).