Aston Martin issues another profit warning and seeks to raise capital

Aston Martin, the luxury car manufacturer, has announced its second profit warning within a two-month period, alongside plans to raise capital. The UK-based company now projects a profit of up to £280m ($352m) for 2024, a decrease from the £305.9m recorded last year. The firm, recognized for its association with the James Bond film series, attributes this financial shortfall to a “minor delay” in the delivery of its highly exclusive Valiant models. Aston Martin had previously issued a profit warning in September, citing a decline in demand within China, where an economic slowdown has impacted sales of luxury products. To strengthen its financial position, the automotive manufacturer announced plans to issue new shares and debt amounting to £210m. Adrian Hallmark, Aston Martin’s chief executive, stated: “The financing we are undertaking supports our growth and provides the investment to continue with future product innovation. We are already taking decisive actions to better position the group for the future including a more balanced production and delivery profile.” Aston Martin indicated it now anticipates delivering approximately half of the 38 Valiant model orders by the close of the year, a revision from its earlier expectation of delivering the majority of these vehicles. Shares of the premium car manufacturer, listed in the UK, have decreased by 50% since the start of the year. Aston Martin operates as a luxury marque, producing high-end automobiles in comparatively limited volumes. In the previous year, the company sold 6,620 vehicles, with approximately one-fifth of these sales occurring in the Asia-Pacific region. In addition to the economic deceleration in China, the company has encountered difficulties with several suppliers, impacting its capacity to construct various new models. Consequently, Aston Martin has stated it will produce approximately 1,000 fewer vehicles than initially projected for this year. European automotive manufacturers have recently experienced challenges, as sluggish sales and heightened international competition have significantly impacted their profitability. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.