Aston Martin has announced a quarterly loss as it continues to struggle following its listing on the London Stock Exchange last year.
The car maker announced a third quarter pre-tax loss of £13.5 million. That compares unfavourably with a profit of £3.1m in the same period last year, and follows a £79m loss in the second quarter of 2019. Overall pre-tax losses for 2019 stand at £92.3m.
Shares rose by around 8% this morning as the results have beaten initial expectations and keep Aston’s profit guidance for 2019 intact. However, they have since dropped back to previous levels and gone even further, hitting a new all-time low of 402.30 this lunchtime.
The news is blamed on lower-than-expected demand for the Vantage. Just 878 have been registered in the first nine months of 2019 in Europe – less than half the number of 911s that Porsche registered in September alone.
CEO Andy Palmer told the Financial Times: “The segment of the market in which Vantage competes is declining, and, notwithstanding a growing market share, Vantage demand remains weaker than our original plans. As a consequence, total wholesale volumes are down year-on-year as we balance growth, brand positioning and dealer inventories”.
Aston has a lot riding on its upcoming DBX SUV, which will be revealed on November 20 before customer deliveries begin in the second quarter of next year.