Fresh Aston Martin losses blamed on lower Vantage demand

Aston Martin Vantage

British maker announces third-quarter pre-tax loss, but shares rose as it maintained profit guidance

Aston Martin has announced a quarterly loss as it continues to struggle following its listing on the London Stock Exchange last year.

The carmaker announced a third quarter pre-tax loss of £13.5 million. That compares unfavourably with a profit of £3.1m in the same period last year, and follows a £79m loss in the second quarter of 2019. Overall pre-tax losses for 2019 stand at £92.3m.

Despite the news, shares rose by around 8% this morning as the results have beaten initial expectations and keep Aston’s profit guidance for 2019 intact. They have since settled at 420p a share, compared with £19 after its initial public offering last year.

The news is blamed on lower-than-expected demand for the Vantage. 878 have been registered so far across Europe in 2019; less than half the number of 911s that Porsche registered in September alone.

CEO Andy Palmer told the Financial Times “The segment of the market in which Vantage competes is declining, and, notwithstanding a growing market share, Vantage demand remains weaker than our original plans. As a consequence, total wholesale volumes are down year-on-year as we balance growth, brand positioning and dealer inventories”.

Aston has a lot riding on its upcoming DBX SUV, which will be revealed on November 20 before customer deliveries begin in the second quarter of next year.

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Source: Autocar Online

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