Staffordshire's JCB hits £300m annual profits

The Rugeley-based giant also saw significant growth in North America which helped offset declining markets in Russia, Brazil, China and India last year.

Underlying earnings before tax were down from £313m in 2013 to £303m, before one-off restructuring costs of £11m.

Sales turnover was £2.51 billion against £2.68bn the previous year, and machine sales were also down from 66,227 to 64,028.

JCB chief executive Graeme Macdonald said it has been a 'solid performance' despite the downturns in emerging markets.

He said: "I am most optimistic about the Indian market recovering. The Government there is making the right policy changes.

"Thankfully, we were not over exposed in China.

"Our view is that the world market will come back and when it does it will come back strong.

"There are massive needs for infrastructure development in emerging markets."

Since 2010, JCB has created 2,000 new jobs at its 11 UK plants, boosting employment levels to 6,000.

Globally, the company now employs 12,500 people.

Mr Macdonald said 500 of the new UK jobs had been in recruitment of young talent in the form of apprentices and graduates.

He said: "We are still investing in young talent which is of vital importance."

JCB is currently investing in UK manufacturing by increasing production capacity at its world headquarters in Rocester.

It has also completed a 700,000 sq ft factory development in Jaipur, India last year costing £62m and construction of a new £18m headquarters for JCB Germany is also underway.

Mr Macdonald said plans for its JCB Cab Systems factory at Rugeley to be moved to Beamhurst, near Uttoxeter were still in development.

"We have not yet firmed up the timing for the move," he added.

JCB chairman Lord Bamford said: "For different reasons each of the 'BRIC' markets of Brazil, Russia, India and China were sharply down in 2014. However, the broad spread of our business enabled us to benefit from better conditions in North America, Western Europe and particularly the UK."

Markets in the UK grew by 30 per cent and JCB's sales in North America grew by 23 per cent - outpacing the market and making it a record year for JCB in North America, which is now the company's third biggest market behind India and the UK.

Mr Macdonald said there was still a huge shortage of houses in the UK and JCB was positioned to meet growing demand for its machines from house builders and for infrastructure projects like Crossrail and potentially HS2.

"The ingredients are there for strong growth for years to come," he said.

Lord Bamford added: "Global market uncertainty has continued into 2015, though our home market of the UK remains a rare bright spot. The need for infrastructure in much of the developing world remains acute and will eventually drive a resumption of growth. Our resilient performance in 2014 demonstrates we are well placed to capitalise on improving trends as they emerge.

"We continue to invest heavily in all areas of our business despite the difficult markets, and this is the best demonstration of our confidence in the future."