Floods at Swiss Aluminum Supplier Drag Down JLR Q2 Revenues

Aluminum supply restrictions are taking much of the blame for Jaguar Land Rover’s near-6% drop in year-on-year revenues in its second-quarter financial result.

One of its main suppliers for the automaker which uses aluminum extensively through its product range, Novelis, was forced in June to stop production at its mill in Sierre, Switzerland, after the facility was flooded following heavy rainfall. The company declared a “force majeure,” which happens when a contract party is unable to fulfill its obligations because of circumstances beyond its control.

JLR’s revenue for the quarter was £6.5 billion ($8.4 billion), down 5.6% compared to same period in 2023, while first-half revenue was flat year-on-year at £13.7 billion ($17.7 billion).

This hit second-quarter profits, too, which were down 10% after the aluminum constraints pushed them down to £398 million ($514 million), although the automaker expects production and wholesale volumes to recover strongly in the second half of 2024. That said, overall first-half profits increased 25% year‑on‑year to £1.1 billion ($1.4 billion).

The company says that for the full year, its markets guidance is unchanged, with revenue of about £30 billion ($38.7 billion).

JLR CEO Adrian Mardell says: “We continue to make good progress delivering our Reimagine strategy. We have invested £250 million ($323 million) so far to prepare our Halewood U.K. plant for electric-vehicle production and with strong global demand for our products, we are well positioned to deliver on our commitments again this financial year.”