Major cut in Leyland losse
Page 4
If you've noticed an error in this article please click here to report it so we can fix it.
• Leyland Trucks' trading loss last year fell to about a third of what it was in 1983.
BL's preliminary results for last year show the operating loss for its commercials and cars businesses before tax and extraordinary items fell from 266.5 million to 239.5 million.
The published figure for 1984 was an 211.7 million loss, but it has been adjusted to exclude Jaguar's profits following its sale in August 1984 and the reduced shareholding in Ashok Leyland, the Indian commercial vehicle builder.
Land Rover-Leyland reduced its operating loss from 253 million to £41 million, while the Leyland Group has reduced its loss from £61 million to £52 million.
Leyland does not break down the group figures beyond saying that Leyland Trucks achieved a significant improvement in its trading position, while Leyland Bus suffered sharply increasing losses.
In 1983, Leyland Trucks was the only loss maker and profits earned by Leyland Bus and Leyland Parts kept the group loss to £70 million. In 1984, Leyland Trucks knocked 229 million off its loss, while Leyland Bus was reckoned to have lost about £20 million.
Given that Leyland is confident that the truck business will achieve a trading profit during 1987, that loss is now down to around 220 million.
On the other hand, Leyland Bus is now in a desperate position with a loss which must now exceed 230 million. On that basis, it lost more than £15,000 on every bus it supplied last year.
Land Rover Group figures show profit up from 22 million in 1984 to £10 million last year.
Freight Rover is responsible for most of this and is credited with a "particularly good performance". In 1984, it made a 25 million profit.
Land Rover-Leyland International, which made a profit of 26 million in 1984 after allowing for the change in Ashok's status, only broke even last year on account of poor conditions in African markets and adverse exchange rates.
Leyland Trucks' course towards profitability next year will be helped by the final closure of the Bathgate engine plant this year and the recently agreed deal to sell trucks through Dal's Eurot network, but the company needs a cash backer to provide the funds its management hoped a Gent Motors takeover would hal given it.
It has made no secret of belief that a GM "partners! — as it saw the relationshii would have provided the support needed to capitalisi on Leyland's recovery.
Without backing, it will h no funds to plough into the development of a new truel range or to invest in its ambitions to develop expori in new markets.
• Leyland's truck dealers being urged to seek backbench MPs support fo more investment in the company.
Sam Newton, the dealer: outspoken chairman, says t the main lesson to be draw from this year's political ro, over the Land Rover-Leyla sale talks with General Mol is that back-bench MPs haA strong influence over the Government's actions.