JLR reports £485m quarterly loss amid cyber-attack disruption
Jaguar Land Rover (JLR) reported a loss before tax and exceptional items of £485 million for the quarter ending September, a significant decline from a profit of £398 million a year earlier. This downturn was primarily caused by a cyber-attack at the end of August, which forced a shutdown of JLR's computer networks and production lines through September and into early October. Production has since returned to normal levels.
Cyber-related costs amounted to £196 million, covering expenses such as external consultants and response efforts, contributing to the overall loss. Revenue for the quarter fell 24% to £4.9 billion from £6.5 billion, driven by the production stoppage, the impact of US tariffs, and the phased-out Jaguar lineup ahead of an upcoming all-electric relaunch.
Additionally, UK car production in September hit a 70-year low, with this decline impacting about 0.17% of GDP per the Office for National Statistics. To support JLR's supply chain, the UK government has provided guarantees for loans of up to £1.5 billion, though JLR has not yet drawn on these funds. The company has also established a supplier financing scheme to provide early payments for new orders, helping to ease suppliers' cash flow challenges.
CEO Adrian Mardell described the period as incredibly difficult but noted that operations are now recovering. CFO Richard Molyneux confirmed that production plants are back up and running at or near capacity.
