Aston Martin Lagonda Global Holdings Plc shares slumped after the luxury car-maker said it will deliver fewer vehicles than expected this year due to persistent supply-chain problems.
The company now expects to deliver as few as 6,200 cars, down from an earlier projection of more than 6,600 units after parts shortages prevented some 400 autos from being shipped in the third quarter, it said Wednesday. Aston also reported a worse-than-expected operating loss in the period.
“Although these headwinds, which are already improving in Q4, have disrupted our near-term financial performance and modestly impacted our full year guidance, the medium and long-term outlook is robust,” Executive Chairman Lawrence Stroll said in a statement. The carmaker has been struggling with a turnaround plan to raise output and lower debt, and has long been suffering from the supply-chain problems that have plagued the industry. Volkswagen AG last month cut its sales expectations for the year as semiconductor availability remains scarce and logistics continue to pose a challenge. Japan’s Toyota Motor Corp. lowered its production target for the same reasons.
Aston plunged as much as 16.5 percent in London, the steepest intraday drop in more than four months. The shares are down around 81 percent this year.In September, the manufacturer completed a £654 million rights issue with Saudi Arabia’s Public Investment Fund becoming an investor. It also attracted China’s Zhejiang Geely Holding Group Co., which acquired a 7.6 percent stake in the carmaker.
“Aston Martin is facing a huge challenge to reduce its debt level,” said Orwa Mohamad, an analyst at Third Bridge. “This is particularly concerning in a deteriorating macro backdrop. Aston Martin has fantastic cars and a strong brand, but their financial position makes success a real challenge.”
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