Luxury sportscar maker Aston Martin has reported a first half loss of GBP78.8m (compares with a profit of GBP21m in same period last year). The firm blamed demand weakness in the UK and Europe for the setback.
Aston Martin first half revenue was down 4% to GBP407m, although wholesale volumes were up 6% to 2,442 units, helped by increased sales in the US and China.
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In a statement, Andy Palmer, Aston Martin CEO, said: "As described in our trading statement on 24 July, both our retail and wholesale volumes have increased year-on-year. However, we are disappointed that our projections for wholesales have fallen short or our original targets impacted by weakness in two of our key markets as well as continued macro-economic uncertainty. Accordingly, we have taken action to reduce wholesale guidance for 2019. We are also improving efficiency across the business, whilst protecting the brand."
Aston Martin said sales from dealerships to customers rose 26% driven by demand for the Vantage and DBS Superleggera, and sharply increased sales in the US and China. Continued strength in the Americas (+54%) and APAC (+24%), including China (+39%), offset softness in the UK (-17%) and EMEA (-19%).
Aston Martin said the new DBX crossover model is 'on track' with new St Athan facility now commissioned and manufacturing first pre-production cars, along with 'encouraging feedback' from customer clinics in key markets of China and the US. Deliveries of the DBS Superleggera Volante begin in Q3 and Vantage AMRs deliver in Q4 2019.
Aston Martin's share price has slumped by around 40% since it issued a profit warning on July 24.
