Silke Mayr Aston Martin has issued another profit warning, citing a “minor delay” in the delivery of its exclusive Valiant models as the main reason for the shortfall.
The British luxury carmaker now expects a profit of up to £280 million ($352 million) for 2024, down from £305.9 million in the previous year.
The company, known for its association with the James Bond franchise, had already issued a profit warning in September, attributing the decline to reduced demand in China, where a slowing economy has affected luxury goods sales.
To strengthen its financial position, Aston Martin plans to raise £210 million by issuing new shares and debt.
“The financing we are undertaking supports our growth and ensures that we can continue investing in product innovation,” said Adrian Hallmark, CEO of Aston Martin. “We are already taking decisive actions to better position the company for the future, including a more balanced production and delivery plan.”
Aston Martin now expects to deliver only about half of the 38 Valiant models ordered by the end of the year, instead of the majority as initially planned.
Shares of the company, listed on the London Stock Exchange, have fallen by 50% since the beginning of the year.
Aston Martin, known for producing luxury cars in limited quantities, sold 6,620 vehicles last year, with about 20% of those going to the Asia-Pacific region.
In addition to the slowdown in China, the company has faced issues with some suppliers, which have impacted its ability to produce several new models. As a result, Aston Martin has announced it will produce around 1,000 fewer cars than originally planned this year.
Like many European automakers, Aston Martin is facing disappointing sales and increased competition from abroad, which has significantly impacted its earnings.