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BRITISH luxury carmaker Aston Martin reported forecast-beating second-quarter profits on Wednesday (Jul 24), powered by stronger sales to dealers of some exclusive models, as it reiterated guidance for hefty profit growth later this year.
Shares in Aston Martin, which have fallen about 30 per cent so far this year, were up about 11 per cent at 166.40 pence by 0822 GMT.
Goldman Sachs analysts said in a note that the group’s stronger-than-expected performance in the last quarter could largely be attributed to more special models in the quarter than the brokerage had anticipated, supporting both average selling prices and gross margins.
Special editions of the Valkyrie and Valour feature among the exclusive models manufactured by the luxury carmaker.
The Gaydon, UK-based company reported an adjusted core profit of £42.3 million (S$73.3 million) for the three months ended Jun 30, down 16 per cent year on year, but better than company-compiled analysts’ estimates of £25 million.
The year-on-year drop was attributed to the halt in production of old models ahead of the roll-out of fresh lines this year.
The company has launched several new cars over the past year including its next generation sports cars the DB12 and Vantage.
It said wholesale volumes will be heavily weighted to the second half of the year, resulting in “significant” year-on-year growth in core profit in the period, while reiterating its 2024 and medium-term guidance. Aston Martin said first-half wholesale volumes fell 32 per cent to 1,998 units, hurt by the group’s planned transition to new Vantage and upgraded DBX707 models, both of which entered production only at the end of the second quarter.
On Tuesday, German luxury sports car maker Porsche cut its sales and profit outlook due to an unexpected aluminium alloy supply shortage. REUTERS
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