Aston Martin will make a profit for the first time since 2010
11-22-17, 12:30 PM
#1
Aston Martin will make a profit for the first time since 2010
LONDON — Aston Martin is on course to post its first annual pre-tax profit since 2010 as strong demand for the luxury automaker's DB11 sports car boosts its performance.
Pre-tax profit reached 22 million pounds ($29 million) in the first nine months of 2017, reversing a loss of 124 million pounds in the same period in 2016, Aston said on Wednesday.
"Our strong financial performance and continued profitability reflect the growing appeal of our high-performance sports cars, with the new DB11 Volante and a new Vantage expected to stimulate further demand in the coming year," Chief Executive Andy Palmer said.
Asked on Monday whether the firm would be in the black this year, Palmer told Reuters: "It's our intention to be."
Aston Martin, which is mainly owned by Kuwaiti and Italian private equity firms, last posted a profit in 2010. Its losses then grew, partly due to lack of new models, a high-profile recall and an extended period without a chief executive.
Since Palmer's appointment in 2014, the firm has pursued a turnaround plan designed to boost its model lineup, quadruple volumes and produce its first SUV at a new plant in Wales, setting up a possible stock market flotation.
Volumes rose 65 percent to 3,330 cars in the first nine months of the year, prompting the firm to raise its full-year guidance to expect core earnings of at least 180 million pounds on revenue of over 840 million pounds.
Third-quarter profit stood at 0.8 million pounds, reflecting a quieter period across the car sector when demand falls as people take holidays and some customers prefer to wait until after the vacation period to have their cars delivered.
On Tuesday, the firm launched its new Vantage model, which will take its output to 7,000 sports cars in 2019, its highest level in a decade.
Pre-tax profit reached 22 million pounds ($29 million) in the first nine months of 2017, reversing a loss of 124 million pounds in the same period in 2016, Aston said on Wednesday.
"Our strong financial performance and continued profitability reflect the growing appeal of our high-performance sports cars, with the new DB11 Volante and a new Vantage expected to stimulate further demand in the coming year," Chief Executive Andy Palmer said.
Asked on Monday whether the firm would be in the black this year, Palmer told Reuters: "It's our intention to be."
Aston Martin, which is mainly owned by Kuwaiti and Italian private equity firms, last posted a profit in 2010. Its losses then grew, partly due to lack of new models, a high-profile recall and an extended period without a chief executive.
Since Palmer's appointment in 2014, the firm has pursued a turnaround plan designed to boost its model lineup, quadruple volumes and produce its first SUV at a new plant in Wales, setting up a possible stock market flotation.
Volumes rose 65 percent to 3,330 cars in the first nine months of the year, prompting the firm to raise its full-year guidance to expect core earnings of at least 180 million pounds on revenue of over 840 million pounds.
Third-quarter profit stood at 0.8 million pounds, reflecting a quieter period across the car sector when demand falls as people take holidays and some customers prefer to wait until after the vacation period to have their cars delivered.
On Tuesday, the firm launched its new Vantage model, which will take its output to 7,000 sports cars in 2019, its highest level in a decade.
11-22-17, 06:16 PM
#2
Lexus Fanatic
It's often difficult for low-volume manufacturers to make a lot of profit, even with sticker-prices well into six-figures, like with Astons. Some low-volume manufacturs manage to do it (Porsche is probably the best example)...but it is generally the exception rather then the rule.
11-23-17, 05:51 AM
#3
It's often difficult for low-volume manufacturers to make a lot of profit, even with sticker-prices well into six-figures, like with Astons. Some low-volume manufacturs manage to do it (Porsche is probably the best example)...but it is generally the exception rather then the rule.
11-23-17, 07:16 AM
#4
Lexus Fanatic
Although it's a little off-topic, there's one thing humorous about Ferrari that I still remember, decades later. Back in the 1980s (you might remember these ads yourself)....Fiat really capitalized, in her advertising, on the fact that the late Enzo Ferrari himself kept a small, lowly Fiat 128 econobox as his personal daily-driver. TV ads showed him driving it up to his own reserved parking-space at Ferrari Headquarters, and a company employee opening the door for him and greeting him.
Aston's claim to fame, of course, was the old James Bond connection, when he drove specially-prepared DB models designed to deal with enemies, such as the ejection seat, hidden front-end guns, and oil-dispensers to make cars behind him spin out.
Aston's claim to fame, of course, was the old James Bond connection, when he drove specially-prepared DB models designed to deal with enemies, such as the ejection seat, hidden front-end guns, and oil-dispensers to make cars behind him spin out.
11-23-17, 10:24 PM
#5
how much of Astons are truly hand built?
if they had a robot factory, they could pump out a bunch of these at lower cost, and more people would buy.
Hand building is just artificially inflating costs and making them unaffordable.
of course the other downside is that if the prices go down, so will Aston's prestige.
if they had a robot factory, they could pump out a bunch of these at lower cost, and more people would buy.
Hand building is just artificially inflating costs and making them unaffordable.
of course the other downside is that if the prices go down, so will Aston's prestige.
11-24-17, 06:02 AM
#6
Lexus Test Driver
Mercedes should buy them out already and make Aston a world class company again.
Like BMW did with RR and VW did with Bentley / Bugatti.
All the tech and engines are coming from MB already.
Like BMW did with RR and VW did with Bentley / Bugatti.
All the tech and engines are coming from MB already.
11-24-17, 06:09 AM
#7
Lexus Fanatic
I understand what you're saying, but, in many ways, the Germans (and India's Tata Motors) already own too much of the British auto industry.
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