Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 11 01T072148Z 2 LYNXMPEJA011O RTROPTP 4 ASTON MARTIN RESULTS - Business Express

Aston Martin cuts volume target as new sports car hits production snag

(Reuters) -British luxury carmaker Aston Martin posted a bigger than expected quarterly loss on Wednesday and lowered its 2023 volume outlook due to production issues for its new DB12 sports car.

Shares in the Gaydon-based company were down more than 7% in early trading.

Aston Martin started delivery of its first next-generation sports car, DB12, last quarter and expects 2023 volume to be 6,700 units, down from an earlier forecast of about 7,000 units.

Production was affected by “supplier readiness” and delays in integration of its new platform that supports the redeveloped infotainment system, it said.

These issues are now resolved, with demand staying strong and orders well into the second quarter of next year, it added.

“The launch of the DB12, which has seen extraordinary demand, is driving a reappraisal of Aston Martin amongst new audiences, with 55% of initial DB12 customers new to the brand,” Executive Chairman Lawrence Stroll said in a statement.

Aston Martin retained the rest of its 2023 outlook, saying demand remained strong as it plans to bolster cash and margins by rolling out next-generation sports cars and limited editions this year and next.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Other automakers over the last week had painted a much bleaker image, with Mercedes-Benz saying inflation and other factors had weighed on its earnings in recent months and Porsche AG warning the luxury sector was also feeling the hit of dampened consumer spending as interest rates rise.

“Having come cap-in-hand to investors in the summer, it’s crucial that Aston Martin comes good on its plans to fire up its profit and cash flow engines,” Hargreaves analyst Sophie Lund-Yates wrote in a note.

The London-listed company reported an adjusted operating loss of 48.4 million pounds ($58.82 million) on revenue of 362.1 million pounds in the three-month period ended Sept. 30.

Analysts on average had expected an adjusted operating loss of 38 million pounds on net revenue of 370 million pounds.

($1 = 0.8229 pounds)

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips and David Evans)


Recent Post: