Aston Martin share price: what’s the latest as sales slump across Europe?
The luxury carmaker saw its share price tumble on Wednesday, after posting a near-£80 million loss in its half-year results.
Aston Martin Lagonda saw its share price tumble on Wednesday, after its half-year results showed the luxury carmaker suffered a £78.8 million loss, as demand from dealers in the UK and Europe dried up.
The carmaker’s share price fell as much has 24% to 445p during early morning trading on Wednesday, with the stock recovering to 497p levels as of 10:50 GMT.
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Aston Martin blames macro-economic uncertainty for poor sales
Last week, Aston Martin issued a profit warning that prompted its share price to lose more than 29% of its value, with its latest trading update prompting yet further declines.
The company blamed ongoing political uncertainty and trade disputes for weaker-than-expected demand for its luxury cars.
‘We are disappointed that our projections for wholesales have fallen short or our original targets impacted by weakness in two of our key markets as well as continued macro-economic uncertainty,’ Aston Martin Lagonda President and CEO Andy Palmer said.
‘Accordingly, we have taken action to reduce wholesale guidance for 2019,’ he added.
US and China demand unable to offset poor European sales
Aston Martin said it believed the business performed well considering the challenging market conditions it has had to contend with this year.
Sales to dealers in the UK and Europe, as well as the Middle East and Africa fell by 20% in the first six months of trading. However, the luxury carmaker said that it recorded strong demand, particularly for its Vantage and DBS Superleggera, in the US and China.
This was reflected by a 26% rise in retail unit sales, helping it grab greater market share, though revenues fell 4% to £407 million compared with the same period last year.
Aston Martin downgrades 2019 wholesale guidance
Aston Martin cut its annual sales guidance range from between 7,100 - 7,300 to 6,500 following its disappointing half-year results.
The company remains focused on executing its turnaround strategy – Second Century Plan – which promotes financial discipline, sustainable growth and ensuring it has the correct funding structure in place.
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