Aston Martin shares gain ground as losses narrow
Shares in Warwickshire luxury carmaker Aston Martin revved up almost 5% yesterday (Wednesday) as the firm reported a narrowing of losses and said it was on track to achieve its revised guidance for the full year, helped by production of new models.
Last month, the FTSE-250 company warned of a lower annual profit and cut its production forecast for 2024 by around 1,000 vehicles due to supply issues and also weak demand from China.
READ MORE: Warwickshire's Aston Martin lowers market expectations
In a statement for the nine month period and the third quarter to end-September, the firm told investors its Q3 performance had improved "in line with revised expectations" and that it was "on track to deliver revised FY 2024 guidance, as supply chain disruptions are proactively managed".
The third quarter loss before tax came in at £12.2 million, compared to a loss of £117.6 million in Q3, 2023. Revenue in the quarter was £391.6 million, down from £362.1 million in the third quarter of 2023.
The company added that following its the successful launch of the new Vantage and DBX707, with deliveries beginning as planned at the end of the second quarter, performance in the fourth quarter will benefit from all next generation core models available in market including initial deliveries of the V12 flagship Vanquish.
Also, Valiant, the ultra-exclusive Special, it added, remained on track with the majority of deliveries expected by year end.
CEO Adrian Hallmark, who joined the company in September, said: "Long-term value creation and sustainable growth are key priorities as we look forward to Q4 2024 and beyond.
"We will deliver our fully reinvigorated portfolio to market efficiently and maximise the considerable commercial potential, including greater personalisation opportunities, to further strengthen the order book.
"In addition, we will drive profitability through a forensic approach to cost management and unrelenting focus on quality with a more balanced delivery profile in the future for our full range of new core models.
"Improved financial and operational performance in Q3 2024, demonstrates our strategy's effectiveness," he added.
"We are on track to meet our revised Full Year 2024 guidance, which reflects the necessary action taken in September to adjust our production volumes given supplier disruption, which we are proactively managing, and the weak macroeconomic environment in China."
