London: Aston Martin Lagonda Global Holdings Plc lowered its annual delivery outlook after supply-chain issues hampered output of its new DB12 sports car during the third quarter.
The British luxury-car maker now expects to ship around 6,700 vehicles this year, down from around 7,000 previously. While wholesales grew in regions, including the Americas and Europe, they slumped 57 per cent in China in the first nine months of the year.
The DB12 production issues “are now resolved but did impact Q3 volume and our full-year production capacity”, Aston Martin said in a statement Wednesday. It attributed the China decline to “weak market conditions”, without elaborating.
Aston Martin fell as much as 6.2 per cent in London. The shares are still up around 33 per cent this year.
The manufacturer is in the middle of a turnaround effort led by Executive Chairman Lawrence Stroll, who rescued the company in 2020. Aston Martin has since carried out multiple capital raises, bringing in investors such as Chinese conglomerate Geely Automobile Holdings Ltd. and Saudi Arabia’s Public Investment Fund.
Aston Martin reiterated its other financial targets for the year and said it expects to achieve positive free cash flow in the fourth quarter on strong demand for its luxury cars and the start of deliveries of high-margin models such as the 1.1-million-pound Valour.
Aston Martin’s adjusted operating loss was 48.4 million pounds ($58.8 million) in the third quarter, wider than the 37.5-million-pound loss projected by analysts. Sales also came in below estimates.