A sign above the entrance to the Aston Martin luxury car dealership on Park Lane in central London on April 11, 2024.
Benjamin Kremel | AFP | Getty Images
London – luxury car manufacturer Aston Martin It reported on Wednesday that first-quarter losses widened as the company halted production of its core models ahead of launching a new range of vehicles later this year.
Shares plunged more than 12% in early London trading, with losses narrowing to 6.4% by 2:25 p.m.
Adjusted pre-tax losses almost doubled to 110.5 million pounds ($137.8 million), compared with a loss of 57.3 million pounds the previous year. According to Reuters, analysts had expected a loss of 93 million pounds in the first quarter.
Revenue fell 10% to £267.7m, while net debt increased 20% to £1.04bn. The company’s huge debt has been a long-standing concern among investors, causing Aston Martin’s share price to fall sharply since it went public in 2018.
Analysts at Jefferies noted “massive deviations across indicators” and a 26% drop in trading volume.
Aston Martin said on Wednesday that four new models due for delivery in 2024 will drive “significant growth” in the second half of the year and beyond.
“Our first quarter results reflect this expected transition period as we halt production and production of our upcoming core models ahead of increased production of the new Vantage, upgraded DBX707 and the upcoming V12 flagship sports car we confirmed today. deliver.
Stroll added that Aston Martin took a “significant step” in strengthening its balance sheet during the quarter, completing a refinancing and improving five-year senior secured notes following a credit rating upgrade. Terms.
“Aston Martin will be in a unique position with a fully reinvigorated core model range by the end of the year,” the company said in a statement.
By region, wholesale volumes fell by 35% in the Americas, 30% in the UK, and 17% in Europe, the Middle East and Africa. Sales in the Asia-Pacific region fell 14%.
The company said SUV wholesale volumes fell 63% due to “a transitional decline in sales ahead of the recent announcement of the launch of new model DBX707”.
interest rate loss
Susannah Streeter, head of currencies and markets at Hargreaves Lansdown, said the firm appeared to be “victim of the severe impact of high interest rates”.
“Rising car financing costs have dented demand for luxury vehicles, showing that even well-heeled aspirational shoppers are not immune to the current economic headwinds. But the timing of new vehicle launches is also less than ideal,” Street said. stated in an email.
Aston Martin reiterated its target of high-single-digit percentage growth in wholesale volumes for the full year, as well as improving gross margins to achieve its long-term 40% target.
The company is preparing to welcome Bentley’s current leader, Adrian Hallmark, will become its new chief executive this fall. Hallmark will become its third new CEO since 2020.
Aston Martin’s performance follows global carmakers’ lead star On Tuesday, the company also reported slowing sales as it prepares to launch a slew of new models this year.
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