LONDON (Reuters) - Jaguar Land Rover (JLR) said on Wednesday its second-quarter results would be affected by a blast at the Chinese port of Tianjin in August which destroyed or damaged thousands of its cars at the site.
A chemical explosion at Tianjin port killed more than 160 people and also affected the supply of cars from a number of other automakers.
JLR, owned by India’s Tata Motors, said it was still assessing the damage done to its 5,800 vehicles at the site and that it would take time to work out the level of money from insurance it could receive.
“In these circumstances, there is likely to be a one-time exceptional charge in Q2 FY16 before any potential recoveries in subsequent quarters,” the firm said ahead of next month’s results covering the three months to the end of September.
Volumes had also been hit in the period due to a 32 percent slump in Chinese sales, where an economic slowdown has hit demand in the world’s biggest car market.
Overall sales fell 1 percent compared with the same three months last year, as double-digit rises in Europe and North American failed to outweigh falls in China and the overseas region, which includes Russia, where sanctions imposed in the wake of the Ukraine crisis have hit demand.
Chief Executive Ralf Speth told reporters last month that despite the slowdown in China, which had been the firm’s fastest growing market last year, he still expected overall sales to rise in 2015 compared with 2014.
He said growth in areas such as Europe, where sales rose 34 percent and North America, which increased by 23 percent, could help offset the slump in China.
Reporting by Costas Pitas; Editing by Jason Neely and Mark Potter