Aston Martin says 2019’s profit is likely to reduce in half due to weak European markets

on Jan 8, 2020
Updated: Mar 11, 2020
Listen
  • Aston Martin expects its 2019's annual profit to reduce in half due to the weak European markets.
  • Aston Martin has lost around 75% in the stock market since its public listing in 2018.
  • Aston Martin says it has booked 1,800 orders for its new DBX SUV to hit the market later in 2020.
  • The company expects 2019's earnings before EBITDA around 130 to 140 million pounds.
  • Aston Martin's chief marketing officer Simon Sproule will quit the company and join Fiat Chrysler Automobiles on February 3rd.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

British independent manufacturer of luxury sports cars,
Aston Martin, announced on Tuesday its forecast of severely bruised annual
profit. The company blamed the weak European demand and stated that the annual profit
is likely to drop as much as 50% in 2019. Following the announcement, Aston
Martin’s shares were seen dropping sharply as its competitors like Rolls Royce
and Bentley powered ahead.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Aston Martin Has Lost Around 75% In The Stock Market
Since Its Listing In 2018

Copy link to section

The stock declined by around 20% on Tuesday that marked
an overall around 75% drop in share prices since Aston Martin’s IPO in October
2018. The stock was priced at 1,700 GBX at the time of public listing. The
luxury sports car manufacturer has traded well below its listing price in the
previous two years.

Aston Martin is widely known as the fictional character,
James Bond’s preferred sports car. The company made a sizeable investment into
its new factory in 2019 that was dedicated to build Aston Martin’s first-ever
SUV and mark its entrance into a globally lucrative market that a whole bunch
of automakers has entered. The move is likely to be challenging for Aston
Martin, however, as its competitors, Volkswagen owned Bentley and BMW owned
Rolls Royce were already ahead of it.

Bentley’s announcement on Tuesday declared that its new
Bentayga SUV has contributed the most in returning the company back to profitability
in 2019. Rolls
Royce also announced a massive 25% growth in sales in 2019
, courtesy of its
new Cullinan SUV.

Booking Rate For Aston Martin DBX Is Better Than Any Of
Its Other Offerings

Copy link to section

Aston Martin expects its DBX SUV to hit the market in
2020 and follow in BMW and Volkswagen’s steps in improving sales and consequently,
profitability for the company this year. As per the company spokesman, 1,800
orders have so far been confirmed for the DBX since its launch back in November
2019. As per Aston Martin’s CEO, Andy Palmer, the rate at which DBX orders are
being booked is significantly better than any of the company’s previous
launches.

The car manufacturer expects 2019’s earnings before
mandatory deductions of interest, tax, depreciation and, amortization (EBITDA) to
lie somewhere between 130 and 140 million pounds. The figure is relatively
meager when compared to earnings from a year before of 247.3 million
pounds. In a previous estimate, analysts had expected 196 million pounds
in earnings for Aston Martin in 2019.

In separate news, Aston
Martin also announced
that its Simon Sproule, the company’s chief marketing
officer, will be departing on February 3rd, and will join Fiat
Chrysler Automobiles as the chief communications officer.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Stock Market