The British car brand Aston Martin was loved by James Bond. However, recently, the hero of the spy movies and the famous car manufacturer are not attracting the same praise as they did many years ago.
This is clearly seen in the sales results of premium cars. The authorities of Aston Martin have admitted that they expect worse results for 2019. Profit will decrease to 130-140 million pounds against almost 250 million PLN earned a year earlier – reports the British daily newspaper The Guardian.
The latest estimates of the management board are worse than the forecasts of analysts, who expected the results to deteriorate, but not much. They were betting almost £200m on profits.
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Aston Martin bosses admit that 2019 was a very disappointing year for them. And the decline in profits is not only the result of worse sales, but also higher operating costs (including marketing). Wholesale vehicle sales through third-party dealers only fell 7% year-over-year.
Stock investors reacted immediately to the latest troubling news from the company. Aston Martin shares lost nearly 15 percent on Tuesday. This means that the value of the brand dropped by almost £150 million in a matter of hours. It is currently around £1bn.
“Aston Martin is one of the biggest successes in the stock market since I can remember,” says Russ Mold, chief investment officer of AJ Bell, quoted by The Guardian.
“There is a lot of competition for luxury cars and Aston Martin seems to be behind,” he insists. He cites Rolls-Royce as an example. The manufacturer has announced the highest annual sales in its 116-year history.
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