JANUARY 7 — Luxury British carmaker Aston Martin today warned that its annual core profit would plummet more than 45 per cent from last year, as weak demand in Europe led to a drop in wholesale volumes.
The 106-year-old firm, famed for being fictional agent James Bond’s brand of choice, had in November highlighted tough trading conditions, particularly in the UK and Europe, and weak demand for its Vantage model.
The company said these conditions had continued through its peak delivery period in December and led to a 7 per cent drop in wholesale volumes for the year.
It expects 2019 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between £130 million and £140 million, compared with £247.3 million (US$325.37 million) a year earlier.
“From a trading perspective, 2019 has been a very disappointing year,” Chief Executive Officer Andy Palmer said, as the company now expects adjusted EBITDA margin of 12.5 per cent to 13.5 per cent, down from 22.6 per cent in 2018.
The broader global automotive industry has also endured a torrid year, hit by declining sales in China and its trade war with the United States as well as tougher regulation on diesel vehicles sales. — Reuters
