JLR's margin target keeps shrinking, and so does patience

Jaguar Land Rover's first-quarter profit before tax came in at £109 million, down from £351 million a year ago, with adjusted EBIT margin sliding to 2.8% from 4.0%, according to the company's own trading update. That follows an annual profit collapse of more than 99%, from £2.5 billion to £14 million, blamed on US tariffs, a cyber-attack that halted factories, and weak China demand. The company now targets just a 4% margin this year, a steep retreat from the 10% goal it was chasing not long ago, and Tata Motors shares dropped as much as 10% when that guidance landed. Retail sales fell 15.3% to 80,000 units in the same quarter, per Reuters, which means the volume recovery investors were promised isn't showing up either. JLR's finance chief called the period difficult and exciting. Shareholders are hearing mostly the first word.