Demand for some of Aston Martin's traditional sports models has stumbled, hurting prices amid uncertainty surrounding Brexit, weakening economies and global trade wars
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Aston Martin Lagonda Global Holdings Plc reported lower third-quarter earnings as the luxury carmaker pins a sales revival to the launch of its first sport-utility vehicle later this month.
The company, the worst performer among Britain’s top 350 stocks in the past year, said reported adjusted operating profit of 13.4 million pounds ($14.8 million), down 51% from a year earlier, according to a statement Thursday.
- Demand for some of Aston Martin’s traditional sports models has stumbled, hurting prices amid uncertainty surrounding Brexit, weakening economies and global trade wars.
- Deliveries this year will fall below the previously targeted range of 6,300 to 6,500 autos, according to the company, a setback as it seeks to lift annual output to 14,000 by 2023.
- Chief Executive Officer Andy Palmer is betting on the coming DBX SUV as the main driver of growth. The car, priced at $190,000, will be launched in Beijing this month with deliveries beginning next year. Palmer said production will start in the second quarter.
- Analysts have said the company may need to sell new stock to shore up its balance sheet, though a shareholder meeting in June restricted management’s power to do so without approval. It can also only gain access to a further $100 million of financing if it secures 1,400 orders for the DBX by June.
Aston shares have declined 78% from an initial public offering price of 19 pounds in October last year. That’s shrunk the company’s market value to 952 million pounds.