Jaguar Land Rover has reported a healthy set of results for the final three months of 2019.
The Midland car maker posted profits of £318m for the the third quarter of the 2019/20 financial year from October to the end of December 2019.
The company's performance was in part attributed to a 24.3% uplift in sales in China and strong demand for the new Range Rover Evoque.
It means the car maker has seen a profit of around £79m for the 2019/20 financial year so far - with just three months remaining.
Although sales were down by 2.3%, revenues were up 2.8% to £6.4 billion.
As well as a much-needed boost in China, Jaguar Land Rover also saw sales rise by 1.1% in its North America market.
Sales of the new Range Rover Evoque were up 30% while the refreshed land Rover Discovery Sport saw a 9.2% sales rise.
Sales of the Range Rover Sport and Land Rover Discovery also rose.
The pre-tax profit of £318m in the third quarter, represented a £591m year-on-year improvement compared to a £273m loss in the third quarter of last year (before an exceptional non-cash asset impairment of £3.1 billion in Q3 of the prior year).
Jaguar Land Rover said its performance reflected the higher China volume, stronger product mix, lower operating costs (including its £2.5 billion Project Charge cost-saving programme) and favourable foreign exchange.
Margins also turned positive year-on-year with an EBIT margin of 3.3% and an EBITDA margin of 10.8%.
The Project Charge programme reduced operating costs by £154 million, investment by £200 million and inventories by £405m in the quarter.
This brings the total cost and cashflow improvements to £2.9 billion, exceeding the £2.5 billion target three months ahead of schedule.
Jaguar Land Rover said it has now embarked on Project Charge +, which will primarily target cost savings and deliver a further £1.1 billion of cost and cashflow improvements for a total of £4 billion of improvements by March 2021.
The results were released on the same day it was announced
Welcoming the results, Mr Speth said: “In the third quarter Jaguar Land Rover sustained year-on-year revenue and profit growth as we continued to transform our business.
“Conditions in the automotive industry remain challenging but we are encouraged by the recovery in our China business and the success of the new Range Rover Evoque.
“Our proactive and decisive actions are creating a more robust, resilient business, transforming today for tomorrow.”
Mr Speth added: “Our improving financial results and the cost and cash flow achievements of Project Charge will support the next phase of our pipeline of exciting new vehicles and technologies, with a choice of outstanding electrified, petrol and diesel powertrains.
“This combined success is enabling us to lay the foundations for long-term growth as we move purposefully towards Destination Zero - our mission to shape future mobility with zero emissions, zero accidents and zero congestion.”
However the company warned that the situation with the coronavirus in China could impact on its end of year results.
In its results statement it said: “Despite the many challenges presently facing the industry, Jaguar Land Rover has continued to expect improved profitability and cashflow for the financial year ending 31 March 2020 with an EBIT margin of around 3%, however, the developing situation with the coronavirus could have some impact on this.”
