Aston Martin shares plunge on volume target cut, lingering debt

Aston Martin reported an adjusted operating loss of £48.4 million ($58.8 million) for the three months to the end of September and a net revenue of £362.1 million.

Deliveries of the next-generation DB12 sports car began last quarter and the company now expects 2023 volumes to come in at 6,700 units, down from a previous projection of around 7,000 units. The company added that these issues are now resolved but impacted third-quarter volumes and full-year production capacity.

“Commencing deliveries of our next generation of sports cars is a major milestone marking the beginning of a completely new line up of front engine sports cars that will reposition Aston Martin as an ultra-luxury high-performance brand, enhance our growth and bring higher levels of profitability,” Stroll added. headtopics.com

Shareholders including Stroll’s investment consortium Yew Tree and Saudi Arabia’s Public Investment Fund snapped up new shares in a bid to alleviate the debt burden. By the end of July 2023, the company’s share price had more than tripled from the all-time low seen in November 2022, but has since slid back into steady decline.

“The company is seeing strong demand but, with losses coming in ahead of expectations, there is little reason for the market to give Aston Martin the benefit of the doubt for even the smallest misstep,” he said. headtopics.com

Aston Martin recorded net debt in the third quarter of £750 million, down from £766 million at the end of 2022, and said it remains focused on reducing leverage and retiring debt as outlined in July.

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