Currently reading: Aston Martin shares fall as uncertainty hits sales
Luxury car maker has blamed weak UK and European markets as one reason for its revised 2019 outlook
Rachel Burgess
News
2 mins read
24 July 2019

Shares in Aston Martin have dived as the Gaydon-based car maker cut its sales and profit forecasts, attributing the fall to weak markets in the UK and Europe and economic uncertainty. 

The luxury marque said it was “taking immediate actions to improve efficiency and reduce the costs base as [it] heads into 2020”. 

Shares fell 22% in early trading, taking them down to around £8, a 55% fall over the £19 price which valued the company at £4.3bn when it first floated in October 2018.

Aston Martin’s revised wholesale volumes are now 6300 to 6500 vehicles for the full year, down from the 7100 to 7300 units forecast at the time of its annual results in February.

Wholesale car sales fell 22% in the UK and by 28% in Europe, the Middle East and Africa, while it was a rosier picture elsewhere: in America, now Aston Martin’s biggest market, volumes rose by 20% in the first half of the year.

Aston Martin said retail sales grew by 26% in the first six months of 2019 but the poor performance in wholesale - which grew by only 6% globally - prompted a downgrading of full-year financial expectations.

Along with a revised outlook on volumes, Aston Martin is expecting full-year figures to see an adjusted EBITDA [earnings before interest, tax, depreciation and amortization] margin down 20% and profit margin down 8%.

Aston Martin said: “We anticipate that this softness will continue for the remainder of the year and are planning prudently for 2020."

Chief executive Andy Palmer has previously warned of the potential impact a no-deal Brexit could have on the car industry.

The marque said that production of its DBX SUV and Valkyrie hypercar “remain on plan”. 

It added: “During the first half, we have been disciplined, as appropriate for our luxury positioning in maintaining the quality of sales with core wholesales up 9% supporting a continued reduction in dealer inventory as we prepare the network for DBX.”

Palmer commented: “Whilst retails have grown by 26% year-to-date, our wholesale performance is adversely impacted by macro-economic uncertainty and enduring weakness in UK and European markets. We are disappointed that short-term wholesales have fallen short of our original expectations, but we are committed to maintaining quality of sales and protecting our brand position first and foremost. 

“We are today taking decisive action to manage inventory and the Aston Martin Lagonda brands for the long-term. We remain focused on the successful execution of the Second Century Plan and on delivering sustainable long-term growth.”

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xxxx 24 July 2019

Kiss of death

Like Football manager of the Month.  Autocar gave him a award in 2019 and wrote the following " Aston martin president  and CEO Andy Palmer took home this year's Editor's Award for the fresh lease of life he has injected into one of Britain's best-loved brands.".  Spent to long moaning about BREXIT, but, I suppose selling overpriced shares in the first place might deserve another award.

Hughbl 24 July 2019

I see the usual trolls are out from under the bridge

Have fun boys.

lambo58 24 July 2019

Trolls did not put this

Trolls did not put this overpriced, overhyped brand in the crapper.

It did it all itself.

kboothby 24 July 2019

If I had the money

I would take a punt. AM is an iconic brand, it has gone "tits up" several times and is still here.  The name alone is worth far more than its tangible assets.

What pisses me off though is the wankers on here who gloat about its downturn, where does the negativity come from? Nobheads.

jason_recliner 25 July 2019

kboothby wrote:

kboothby wrote:

I would take a punt. AM is an iconic brand, it has gone "tits up" several times and is still here.  The name alone is worth far more than its tangible assets.

What pisses me off though is the wankers on here who gloat about its downturn, where does the negativity come from? Nobheads.

I don't understand the gloating negativity either. It's a storied, iconic brand. They make all their cars in the UK, employing many workers. The Vantage and DB11 are beautiful. The DBS not so much, but rich people like massive grilles so what do I know?

I don't know anything about finance, so can't comment on whether the company is over or under valued. I can say that I REALLY hope they pull through whatever difficulties they are facing. It's one of the last remaining great manufacturers.

Sundym 24 July 2019

So many doomsday folk...

They are launching their suv this year, which will immediately become their best seller and most profitable car, followed by a new saloon . The Chinese and US markets cant get enough of those . If I was a gambling man , right now or just prior to SUV launch is the time to buy the shares.