Aston Martin has issued its second profit warning in just two months, citing a “minor delay” in the delivery of its ultra-exclusive Valiant models as the reason for the shortfall.
The British luxury car manufacturer now expects a profit of up to £280 million ($352 million) for 2024, which is below last year’s profit of £305.9 million.
The company, known for its association with the James Bond franchise, had already issued a profit warning in September, attributing the decline to reduced demand in China, where a slowing economy has affected the sales of luxury goods.
To improve its financial position, Aston Martin plans to raise £210 million by issuing new shares and debt.
“The financing we are undertaking supports our growth and secures the necessary investment for future product innovation,” said Adrian Hallmark, CEO of Aston Martin. “We are already taking decisive steps to better position the company for the future, including a more balanced production and delivery profile.”
Aston Martin now expects to deliver only about half of the 38 Valiant models ordered by the end of the year, instead of the majority as initially planned.
The company’s shares, listed on the London Stock Exchange, have dropped by 50% since the start of the year.
Aston Martin, known for producing luxury cars in limited quantities, sold 6,620 vehicles last year, with around 20% of those going to the Asia-Pacific region.
In addition to the slowdown in China, the company has faced issues with some suppliers, which have impacted its ability to produce several new models. As a result, Aston Martin has announced it will produce around 1,000 fewer cars than originally planned this year.
Like many European car manufacturers, Aston Martin is dealing with disappointing sales and increased competition from abroad, which has significantly affected its earnings.