Luxury car maker Aston Martin downgraded its delivery expectations for the year on Wednesday as it pointed to further supply chain issues.
In an update for the nine months to 30 September, the company said it now expects total wholesales to be more in line with current consensus expectations at between 6,200 and 6,600, down from previous guidance of more than 6,600.
The updated outlook reflects the impact of new supply chain and logistical disruption in the second half, which it expects to be short-term “following active management of the relevant issues”.
The car maker also said it was incurring incremental costs specifically associated with mitigating these issues, impacting margin expansion.
Executive chairman Lawrence Stroll said: “Over the last two quarters we have encountered specific supply chain challenges that have delayed our ability to meet customer demand. Whilst we moved quickly to resolve the shortages that affected our Q2 performance, our Q3 growth was hindered by new supply chain challenges, impacting more than 400 vehicles that had been planned to be delivered in the quarter.
“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.”
In the nine-month period, pre-tax losses grew to £511.3m from £188.6m in the same period a year earlier. Aston pointed to a £245m negative non-cash FX revaluation of US dollar-denominated debt as the pound significantly weakened against the greenback.
Revenue rose 16%, however, to £857.2m, driven mainly by strong pricing and mix dynamics, Aston Martin Valkyrie programme deliveries and foreign exchange tailwinds. Revenues in the third quarter were up 33% on the year to £316m thanks to strong wholesale average selling price growth, and to a lesser extent, to modestly higher wholesale volumes.
