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Aston Martin cuts profit forecast, shares down

Published 11/27/2024, 08:10 PM
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Investing.com -- Shares of Aston Martin (LON:AML) fell 4.5% on Tuesday after it issued its second profit warning in just two months, saying that it expects a profit of up to £280 million in 2024, down from £305.9 million last year. 

The luxury carmaker cited a minor delay in the delivery of its exclusive Valiant models as the primary cause of the shortfall.

In addition to the delivery delays, Aston Martin had already flagged weaker demand in China in September, where a slowing economy has impacted sales of high-end vehicles. 

To shore up its finances, the company plans to raise £210 million through a combination of new shares and debt. 

CEO Adrian Hallmark in a statement said that the financing will support the company's growth and future product innovation, while also ensuring a more balanced production and delivery profile.

Aston Martin now expects to deliver only half of the 38 Valiant model orders by the end of the year, falling short of its original expectations. Shares in the company have halved in value since the start of the year. 

Along with the downturn in China, Aston Martin has also faced supply chain issues, resulting in a projected 1,000 fewer cars being built than initially planned for 2024.

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