- Aston Martin's pre-tax loss widens to £118.9 million in the first quarter due to COVID-19.
- The luxury car manufacturer resumed production at its Welsh facility last week.
- The UK company withdraws guidance citing the rising uncertainty of the Coronavirus pandemic.
Aston Martin (LON: AML) said on Wednesday that it saw a significant loss in the first quarter as the Coronavirus pandemic brought the global auto industry to a near halt and wiped demand. The luxury car manufacturer also highlighted that production of its much-anticipated DBX SUV, however, is still on track.
Aston Martin went public in 2018 when its shares were priced at £19. In less than two years, however, the stock has slumped to 35 pence per share at the time of writing.
Aston Martin furloughs employees to combat COVID-19
COVID-19 also fuelled a massive 31% decline in Aston Martin’s core annual retail sales. In a bid to cushion the economic blow from the health crisis, the company resorted to slashing the salaries of its senior management and placing a part of its workforce on furlough.
Aston Martin is known as the brand of choice for cinema icon, James Bond. The UK company said on Wednesday that its pre-tax loss in the quarter that ended on 31st March came in at £118.9 million as compared to £17.3 million loss in the same quarter last year. The car company also announced its full-year loss at £104 million in 2019.
On the revenue front, Aston Martin posted £78.6 million versus the year-ago figure of £196 million. The company resumed production at its Welsh facility last week.
Stripping non-recurring and other exceptional items, the company reported its adjusted loss at £46.9 million in the recent quarter. In the comparable quarter of 2019, Aston Martin had recorded £28.3 million in EBITDA profit.
Aston Martin withdraws guidance on Coronavirus uncertainty
In its report on Wednesday, the luxury automaker also declared to have sold 578 vehicles in the first quarter that came in almost 50% lower than 1,057 vehicles that it sold in Q1 last year. In November, Aston Martin lowered its guidance for vehicle sales in 2020. Experts had forecast the carmaker to sell 6,000 to 6,473 vehicles this year. The company did not divulge specific numbers but said that its sales guidance also lies within the range of what the analysts had estimated.
On Wednesday, however, Aston Martin withdrew its previous financial guidance citing the rising uncertainty of the Coronavirus pandemic.
Aston Martin has so far dropped more than 10% on Wednesday in the stock market. On a year to date basis, the £527.75 million company is currently over 80% down.