Fresh Aston Martin losses blamed on lower Vantage demand
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.
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.
Source: Autocar Online