Jaguar Owner Posts $3.8 Billion Loss on Slump in China
(Bloomberg) -- Tata Motors Ltd. reported a third straight quarterly loss as luxury unit Jaguar Land Rover Automotive Plc took an impairment of 278.4 billion rupees ($3.9 billion), mainly on account of challenges in the China market.
Net loss was 270 billion rupees in the three months through December, the company said in a statement on Thursday, as it battled waning demand for diesel cars and risks from a potentially disorderly Brexit. Analysts predicted profit of 7.73 billion rupees on average.
Diesel vehicles account for just under 90 percent of Jaguar’s sales in Europe at a time when consumers are increasingly choosing more environmentally-friendly options. By 2040, more than half of all new car sales and a third of the planet’s automobile fleet -- equal to 559 million vehicles -- will be electric, according to Bloomberg NEF.Tata Sons Chairman N Chandrasekaran said market conditions continue to be challenging, particularly in China. The company was taking “decisive steps” to increase its competitiveness, reduce costs and improve cash flows, he said in a statement Thursday. Tata Motors risks sinking deeper into junk as its earnings wane. Fitch placed the company on negative credit watch, citing Brexit risks.
Shares of Tata Motors closed 2.8 percent higher on Thursday before the earnings were announced. They are down 52 percent in the past year on concerns about Jaguar Land Rover’s waning sales, profitability and high capital-expenditure requirements.Credit-default swaps protecting Jaguar’s debt against non-payment using five-year contracts surged to record high 813 basis points on Wednesday. The cost to buy protection on Jaguar bonds was as low as 113 basis points in August 2017.
Net revenue came in at 770 billion rupees missing the 787.5 billion rupees analysts had predicted on average.Tata Motors expects costs from Jaguar’s voluntary redundancy program to be recognized in the March quarter.
译文来源：三泰虎 http://www.santaihu.com/47018.html 译者：Jessica.Wu
Wisdom12 hours ago
Jaguar is not the most reliable car brand. They've had trouble for some time now.
Hmm...12 hours ago
Analysts predicted a quarterly profit, but Tata lost $3.9 billion...for the quarter??!! I'm either reading this wrong or Tata provide no guidance.
分析师预测塔塔将实现季度盈利，但文章说塔塔亏损了39亿美元? ? ! !难道我看错了？
Tawny12 hours ago
No one in his right mind would buy a Jaguar now
It will spend more time in the repair garage than it will on the road
bill12 hours ago
That’s because a chinese company is making replicas basically stole the ip and making there own brand identical to the jaguar
Gustavo Diaz12 hours ago
Oh no... shoulda coulda woulda done more business in U.S.
Jeremy12 hours ago
GM have tumbled 25% in China, now this from Jaguar? I'm throwing out my wild prediction: economic fall in China causes the next world economic crisis.
D Trump12 hours ago
Quality of Jaguar and Range rover is extremely low, most Chinese are switching to BMW and Benz.
John7 hours ago
how could they sell Jaguars in China anyway? Don't they prefer Giant Pandas?
Jeremy12 hours ago
Are the economic troubles in China due to "organic" influences, or are Trump's tariff's playing a role?
r10 hours ago
All american puppet nations will suffer. Next you will hear GE and Textron with huge losses in asian market. By imposing tarifs on chinese products, it is easier for china to produce more of what it needs with in the country.
Dimmie Azu8 hours ago
There is a saying in Britain: "When you buy a Jag, buy two - for the spare parts."
JurDoc6 hours ago
Oh I will cry myself to sleep tonight.
Volunteer7 hours ago
Tata not as smart as they thought they were. Plunking down cash for Jag/Land Rover without the expertise to make the cars to American durability standards is a big mistake.
James Ellis12 hours ago
China isn't exactly a country that letsl you in to compete. They let you in to rob you and steal your tech.
pg2 hours ago
Jag and Land Rover / Range Rovers are garbage, they are constantly broken and need of repairs, people are finally realizing these brands are garbage, just like all of Tata's products.
sig9mm6 hours ago
Because his cars are junk !
Wile E12 hours ago
that brand is cursed