Disruptions and weak orders test industrial earnings
JLR reported the impact of a supplier fire and Antofagasta cut production guidance after severe weather, while thyssenkrupp lifted profit despite falling orders. Industrial firms are absorbing distinct pressures on output, costs and demand.
Economics & Markets··Evening
A supplier fire pulled JLR profit lower
Jaguar Land Rover reported revenue of 6.0 billion pounds in the quarter to June, down 9.6 per cent, with profit before tax at 109 million pounds and an adjusted operating margin of 2.8 per cent. Wholesales fell 9.2 per cent to 79,288 units. Free cash flow was negative 998 million pounds; closing cash stood at 1.7 billion pounds and total liquidity at 5.9 billion pounds. Range Rover, Range Rover Sport and Defender made up 80.8 per cent of wholesale volumes, up from 77.2 per cent a year earlier. The company cited a fire at a major component supplier at the start of the quarter, market disruption linked to the Middle East, and the planned wind-down of outgoing Jaguar models. Pressure on output and profit was therefore tied to the combination of supply, regional demand and a brand transition. The shift of the mix toward the Range Rover family also shows which models carried the portfolio while volumes contracted.[1]
Antofagasta cut output as copper prices lifted the margin
Antofagasta reported revenue of 4.479 billion dollars for the six months to June, up 18 per cent, and EBITDA of 2,840.5 million dollars, up 27 per cent, lifting the margin 5 percentage points to 63.4 per cent. Copper production fell 9 per cent to 285,000 tonnes. Profit before tax climbed 72 per cent to 1,995.8 million dollars and net cash costs fell 8 per cent to 1.22 dollars a pound. After severe weather in Chile's Coquimbo Region, declared a state of catastrophe, forced a precautionary shutdown at Los Pelambres, the company cut its 2026 production guidance to a range of 625,000 to 655,000 tonnes. Mining and processing have resumed and are ramping back up. The books therefore strengthened on higher copper prices and lower unit cash costs even as physical output and the full-year production range took a weather hit. With profit rising while tonnage fell, the release also shows how price and cost discipline can offset a production loss on the income statement.[2]
thyssenkrupp lifted profit as orders fell
thyssenkrupp reported sales of 8.8 billion euros in the third quarter of 2025/2026, up 8 per cent, and adjusted operating profit of 183 million euros against 155 million euros a year earlier. Net income was 34 million euros after a loss of 255 million euros in the same quarter last year. Order intake fell to 7.7 billion euros from 10.1 billion euros. Free cash flow before mergers and acquisitions improved to negative 114 million euros from negative 227 million euros. The group narrowed its full-year adjusted operating profit range to 600 million to 900 million euros. The sale of its HKM stake to Salzgitter was completed in July, and shareholders approved the spin-off of the materials services arm, with a listing planned within this calendar year. Beside JLR's supply and demand shocks and Antofagasta's weather-driven production cut, thyssenkrupp shows that profit can still rise while orders weaken. Together the three companies show industrial books absorbing distinct pressures — output disruption, commodity prices and softer demand — in the same period.[3], [1], [2]
