Excavator manufacturer JCB defied challenging conditions in the global construction market to ‘grow’ its earnings by more than 34% in 2016 — from £214 million to £287 million.

CEO Graeme Macdonald said: “JCB’s strong performance in 2016 was against some economic headwinds, which saw the global construction equipment market shrink.

“Some markets grew — such as India, which rose by almost 40% — while others fell — including Brazil, which was down by more than 40%.

“The UK market contracted by 5% in 2016 but the good news is that, after a difficult few years, European markets grew strongly and were up by more than 10% last year.”

JCB chairman Lord Bamford said: “While we face challenges in some parts of the world, the global construction market is buoyant in 2017 so far and is expected to grow further during the remainder of this year.

“We continue to launch innovative new products and to enter new sectors; this will enable JCB to secure strong levels of growth in the future.

“The UK market got off to a particularly buoyant start this year, with housebuilding driving the demand for compact and mid-range equipment, particularly telescopic handlers.

“In addition, there are some key infrastructure projects — such as HS2, Hinkley Point and the Thames Tideway — in the early stages of implementation, so customers are currently evaluating their fleet and machinery needs.

“Road improvements and widening schemes across the UK are also leading to increased demand for equipment.”