BRITISH luxury carmaker Aston Martin reported a smaller-than-expected third-quarter loss on Wednesday (Oct 30) and reaffirmed its annual forecast, saying supply disruptions that had caused factory delays were being “proactively managed”.
Shares in the company rose as much as 6 per cent in early trade following the results, which come as European carmakers grapple with weak demand in China and the US.
Aston Martin had warned last month of a lower annual profit and cut its production forecast by about 1,000 vehicles due to disruption at several suppliers, causing manufacturing delays. It also cited persistent weak demand from China.
New CEO Adrian Hallmark said in a statement that the improved financial and operational performance in the third quarter demonstrated the effectiveness of the group’s strategy to ramp up production of fresh models.
The Gaydon, UK-based company switched focus to new models after it had stopped manufacturing older ones, a move it said was expected to drive growth and cash flow from the second half of this year.
Partly helped by bigger production of its new Vantage and DBX707 models, the carmaker said its third-quarter wholesale volumes rose 14 per cent to 1,641 vehicles. The increased output of those models is set to continue into the fourth quarter, it added.
Aston Martin, famous for being fictional secret agent James Bond’s car of choice, posted an adjusted loss before tax of £10.3 million (S$17.7 million) for the three months to Sep 30.
Analysts, on average, had expected a loss of 92 million pounds, according to estimates compiled by the company. REUTERS
