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Aston Martin’s shares sink as losses accelerate
Published on: Thursday, May 02, 2024
By: AFP
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Aston Martin recently pledged to keep producing combustion-engine vehicles for as long as legally possible. (Reuters pic)
Loss after tax ballooned 88% to £138.9 million in the first quarter from a year earlier, Aston said in an earnings release.
Beloved by fictional British spy James Bond, the brand’s share price slid 5% in reaction.
Revenue sank 10% to £267.7 million, but the group predicted an improved performance in the second half of this year on rollout of new models.
“2024 is a year of immense product transformation at Aston Martin, with the introduction of four new models to the market before the end of the year,” said executive chairman Lawrence Stroll.
“Our first quarter performance reflects this expected period of transition, as we ceased production and delivery of our outgoing core models ahead of the ramp up in production of the new Vantage, upgraded DBX707 and our upcoming V12 flagship sports car.”
Aston Martin recently pledged to keep producing combustion-engine vehicles for as long as legally possible, after postponing its push into electrification.
The group in February delayed the launch of its first electric vehicle by one year until 2026, and with deliveries due in 2027.
The news came after Britain last year pushed back its planned ban on the sale of high-polluting petrol and diesel cars from 2030 to 2035, but the government remains committed to net zero carbon emissions by 2050 in order to help tackle climate change.
Today’s results are the first since Aston appointed Adrian Hallmark as its new chief executive, poaching him from German-owned peer Bentley where he stepped down as CEO.
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Hallmark will take the wheel at Aston Martin by Oct 1, replacing Italian national Amedeo Felisa.
The Briton will be the fourth chief executive in as many years.
