JAGUAR SEES STRONG GROWTH IN NEW MODEL SALES
Jaguar Plc <JAGR.L> is about to sell its
new XJ-6 model on the U.S. And Japanese markets and expects a
strong reception based on its success in the U.K., Chairman Sir
John Egan told a news conference.
    Commenting on an 11 pct growth in 1986 group turnover to
830.4 mln stg and pre-tax profits at 120.8 mln stg, slightly
below 1985's 121.3 mln, Egan said Jaguar aimed at an average
profit growth of 15 pct per year. However, the introduction of
the new model had kept this year's pre-tax profit down.
    Jaguar starts selling XJ-6 in the U.S. In May and plans to
sell 25,000 of its total 47,000 production there in 1987.
    U.S. Sales now account for 65 pct of total turnover,
finance director John Edwards said.
    A U.S. Price for the car has not been set yet, but Edwards
said the relatively high car prices in dollars of West German
competitors offered an "umbrella" for Jaguar. He added the XJ-6
had also to compete with U.S. Luxury car producers which would
restrict the car's price.
    Jaguar hedges a majority of its dollar receipts on a
12-month rolling basis and plans to do so for a larger part of
its receipts for longer periods, John Egan said.
    In the longer term, capital expenditure will amount to 10
pct of net sales. Research and development will cost four pct
of net sales and training two pct.
    Jaguar builds half of its cars and buys components for the
other half. The firm is in early stages of considering the
building of an own press shop in Britain for about 80 mln stg,
but Egan said this would take at least another three years
    On the London Stock Exchange, Jaguar's shares were last
quoted at 591p, down from 611p at yesterday's close, after
reporting 1986 results which were in line with market
expectations, dealers said.
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