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Luxury carmaker Aston Martin withdrew its guidance after reporting a sharp rise in losses with revenue down 60% as the Covid-19 pandemic impacted dealer demand and weighed on prices, hurting margins. The company said, however, it was on track to start deliveries in the summer.
Following its decision to reopen its St Athan manufacturing facility, which started production of DBX bodies on 12 May and remained on course to start full production in the next few weeks, the company said deliveries would start in the summer.
For the first quarter, pre-tax losses widened to £118.9m from £17.3m on-year as revenue fell 60% to £78.6m, with gross margin falling to 5.2% to 42.1%.
The decline in revenue came as the coronavirus 'impacted dealer demand, amplifying the impact of strategic decision to lower wholesales to reduce dealer inventory towards a luxury norm; and, reflected lower average selling price,' the company said. Total and core wholesale average selling price of fell to £98k from £160k on-year with core wholesales volumes down 44%, as a result of the strategic destocking and the onset of Covid-19 it added.
Looking ahead, the company withdrew its previous guidance for the year, citing uncertainty surrounding the duration and impact of the Covid-19 pandemic on the global economy.
'The order book continues to build and extends into 2021. We also have a strong order book for the recently launched Vantage Roadster,' Aston Martin said.