Home / Business / Aston Martin shares plunged 40% since October

Aston Martin shares plunged 40% since October



The company posted Thursday an annual loss of £ 68 million ($ 90 million) after being profitable in 2017. The loss was entirely due to costs of £ 136 million ($ 181 million) related to its introduction October stock market.
The favorite automaker of James Bond, fictitious British secret service agent, Aston Martin is struggling to overcome doubts about his ability to compete with rivals, including Ferrari (RACE).

The company's shares fell 5% on the first trading day of last year and even a 25% increase in their revenue in 2018 could not stop investors. to empty the stock on Thursday. It has now plunged more than 40% since its inception.

According to his results, Aston sold 6,441 cars last year. CEO Andy Palmer said he expects this figure to increase once the company completed the construction of a new factory in Wales and began selling its DBX SUV. The company plans to begin production testing of DBX in the second quarter of this year, with full production starting in the first half of 2020.

But the luxury car maker also acknowledged that it could be problematic if Britain left the European Union without an agreement on Brexit that protects the trade.

Aston warned Thursday that production could be disrupted. He set aside 30 million pounds ($ 40 million) to deal with the potential consequences of a messy exit.

She said she had hired a procurement and supply chain manager to prepare the Brexit and put in place emergency plans to use different routes and ports for delivery of parts.

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The United Kingdom must leave the European Union in just 29 days, but the political situation remains very uncertain.

The collapse of the European Union would entail new costs and new barriers to trade for UK companies. The entangled supply chains would place the manufacturing companies in a particularly difficult position.

Builders are already canceling planned investments and preparing to let their plants run. Global companies, including BMW (BAMXF), Nissan (NSANF) and Ford (F) each has factories in the UK.

Fixed: An earlier version of this article contained an incorrect conversation.£ 30 million booked by Aston Martin.


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