Aston Martin has issued its second profit warning in just two months, citing a “minor delay” in the delivery of its ultra-exclusive Valiant models as the cause of the shortfall.
The British luxury car manufacturer now expects a profit of up to £280 million ($352 million) for 2024, which is below last year’s profit of £305.9 million.
The company, known for its connection to the James Bond franchise, had previously warned of profit difficulties in September, attributing the decline to reduced demand in China, where a slowing economy has impacted the sales of luxury goods.
To improve its financial position, Aston Martin plans to raise £210 million by issuing new shares and debt.
“The financing we are undertaking supports our growth and ensures the investment needed for continued product innovation,” said Adrian Hallmark, CEO of Aston Martin. “We are already taking decisive actions to better position the group for the future, including a more balanced production and delivery profile.”
Aston Martin now expects to deliver only about half of the 38 Valiant models ordered by the end of the year, instead of the majority as previously planned.
The company’s shares, listed on the London Stock Exchange, have fallen by 50% since the start of the year.
Aston Martin, known for producing luxury cars in limited quantities, sold 6,620 vehicles last year, with approximately 20% of those going to the Asia-Pacific region.
In addition to the slowdown in China, the company has faced issues with some suppliers, which have affected its ability to produce several new models. As a result, Aston Martin has announced it will produce about 1,000 fewer cars than initially planned this year.
Like many European automakers, Aston Martin is facing disappointing sales and increased competition from abroad, which has significantly impacted its earnings.
