Due to production problems with its new DB12 sports vehicle, British luxury automaker Aston Martin (AML.L) reported a more considerable than anticipated quarterly loss on Wednesday and revised its sales forecast 2023.
In early trade, the Gaydon-based company’s shares were down almost 7%. Aston Martin forecasts 2023 sales to be 6,700 units, down from an earlier prediction of roughly 7,000 units. The company began deliveries of its first next-generation sports car, the DB12, last quarter.
It said difficulties integrating its new platform, which supports the updated infotainment system, and “supplier readiness” affected production.
It further said that these problems had been fixed, with orders continuing far into the second quarter of the following year and robust demand.
Executive Chairman Lawrence Stroll stated, “The launch of the DB12, which has seen extraordinary demand, is driving a reappraisal of Aston Martin among new audiences, with 55% of initial DB12 customers new to the brand.”
Aston Martin kept the remainder of its 2023 forecast unchanged, stating that demand was still high and intended to increase revenue and profit margins by introducing new sports cars and limited editions this year and next.
Over the last week, several manufacturers have presented a far more pessimistic picture. Mercedes-Benz claimed that inflation and other factors had negatively impacted recent earnings. Porsche AG warned that declining consumer spending as interest rates rose also hurt the luxury market.
In a note, Hargreaves analyst Sophie Lund-Yates stated, “It’s critical that Aston Martin delivers on its plans to fire up its profit and cash flow engines, having come cap-in-hand to investors in the summer.”
For the three months ended September 30, the London-listed firm recorded an adjusted operating loss of 48.4 million pounds ($58.82 million) on revenue of 362.1 million pounds. On a net sales of 370 million pounds, analysts projected an adjusted operating loss of 38 million pounds on average.
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