Aston Martin Issues Second Profit Warning in Two Months

Aston Martin has announced plans to raise funds after issuing its second profit warning in just two months.

The British luxury automaker now expects to generate a profit of up to £280 million ($352 million) in 2024, lower than the £305.9 million reported last year.

The company, renowned for its ties to the James Bond film franchise, attributed the shortfall to a “minor delay” in deliveries of its exclusive Valiant models.

In September, Aston Martin had already warned about its profit outlook, citing a drop in demand in China due to a slowing economy, which has impacted sales of high-end products. To strengthen its finances, the company plans to raise £210 million through a combination of new shares and debt.

Aston Martin’s CEO, Adrian Hallmark, stated, “The financing we are undertaking supports our growth and provides the investment to continue with future product innovation.” He added that the company is taking “decisive actions” to better position itself for the future, including a more balanced production and delivery schedule.

The company now expects to deliver around half of the 38 Valiant model orders by the end of the year, down from its earlier estimate of delivering most of those vehicles.

Shares in the UK-listed carmaker have fallen by 50% since the start of the year.

Aston Martin, a prestigious brand known for producing high-end vehicles in limited quantities, sold 6,620 cars last year, with about 20% of those sold in the Asia-Pacific region.

In addition to the slowdown in China, the company has faced supply chain issues affecting its ability to produce several new models. As a result, Aston Martin plans to manufacture approximately 1,000 fewer cars than initially planned this year.

Like other European automakers, Aston Martin has struggled with disappointing sales and increased competition, which has heavily impacted earnings.