Gaydon, UK: Aston Martin has revealed it is seeking to raise funds after issuing its second profit warning in two months. The luxury car maker now forecasts a profit of up to £280m ($352m) for 2024, down from £305.9m last year.
The shortfall was attributed to a “minor delay” in the delivery of its exclusive Valiant models. In addition, the company cited weak demand in China, where a slowing economy has impacted sales of high-end goods.
To strengthen its finances, Aston Martin plans to issue £210m in new shares and debt. CEO Adrian Hallmark stated that the financing would support growth and future product innovation, alongside actions to balance production and delivery schedules.
The company now expects to deliver half of the 38 Valiant model orders by year-end, down from previous expectations. Last year, it sold 6,620 vehicles, with about a fifth of those going to the Asia-Pacific region.
Aston Martin’s UK-listed shares have lost half their value since the beginning of the year, partly due to supply chain issues and a drop in demand.
On top of the slowdown in China, the company also faced challenges at suppliers, leading to 1,000 fewer cars being built than planned.
In the face of disappointing sales and increased competition, European carmakers, including Aston Martin, are struggling with declining earnings.
MOST READ | Folic Acid essential for babies’ health: NI to mandate flour fortification
