British luxury carmaker and the highly famed company whose cars can be seen in James Bond movies had a terribly disappointing last year and have issued a warning on its profits.
The British carmaker is one of the oldest and has a 106-year history of making luxury cars. But last year the company predicted that its annual earnings are expected to be almost halved from the previous year. The shares of the company have plunged by almost 16% after the news became public.
But Aston Martin’s rival company Rolls Royce owned by BMW had a fantastic year. The company reported that last year the company had sold a total of 5,100 different models.
Aston Martin has given the blame on tough trading conditions that became highlighted in November and continued through the peak sale time in the month of December resulting in higher costs, lower sales, and ever-decreasing profit margins.
It told the media that its retail sales have increased by 12% on a year-to-year basis but the wholesale volumes which account for how many cars are being ordered by the dealers from the company fell by 7% to 5809. The details of the figures were released by none other than Andy Palmer the chief executive of Aston Martin.
The company is expecting earnings of 130 million GBP to 140 million GBP. But that well short of its year profit which was 247.3 million GBP. It was listed on the London Stock Exchange in October 2018 and the listing price was at 19 pounds a share. That value today stands at a meager 4.50 pounds per share.
Rolls Royce on the other hand, told that the launch of its new model the Cullinan SUV was a big factor in the higher sales and revenue last year. But even experts are telling that 2020 is going to be a tough year for the company.