Economy Aston Martin swings to third-quarter pre-tax loss

Aston Martin swings to third-quarter pre-tax loss

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Aston Martin swings to third-quarter pre-tax loss

Luxury British carmaker Aston Martin swung to a third-quarter pre-tax loss of 13.5 million pounds ($17 million) on Thursday, saying its full-year wholesale volumes would be lower than previously guided after slumping sales in Europe and Asia.

The 106-year automaker, famed for being fictional agent James Bond’s brand of choice, said it is taking action to control its costs through an efficiency programme but still expected to meet the market’s financial expectations.

“Total wholesale volumes are down year-on-year as we balance growth, brand positioning and dealer inventories,” said Chief Executive Andy Palmer.

Volumes dropped 16% to 1,497 cars in the three months to the end of September as demand in Britain fell 22%, the wider Europe, Middle East and Africa area dropped 17% and in Asia volumes fell by a third.

Earlier this year, the company announced it was raising $150 million in debt at a 12% interest rate to bolster its balance sheet ahead of the launch of a new sport utility vehicle, which it hopes will revive its fortunes by doubling its output.

On Thursday, Aston said its net interest expense guidance for 2019 stood at around 83 million pounds, also hit by the impact of unhedged expenses in U.S. dollars, with prior guidance at roughly 70 million pounds.The global automotive industry has undergone a torrid year, hit by declining sales in China, trade war worries between the world’s two biggest economies, a slump in diesel sales in Europe and the need to invest heavily in electrification.

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