Aston Martin expects lower full-year core profit as delivery delays bite
Adds details and background in paragraphs 3-7, financing details in paragraph 8
Nov 26 (Reuters) -British luxury carmaker Aston Martin AML.L on Tuesday forecast its annual core profit to fall short of 2023 levels as delivery delays in the ultra-exclusive Valiant models weigh on its margins.
The company expects its 2024 adjusted EBITDA to be in the range of 270 million pounds to 280 million pounds ($338.55 million - $351.09 million) compared to 305.9 million pounds last year.
The carmaker said it now expects to deliver only half of the 38 Valiant models by year end, previously guided to be the majority.
"We are already taking decisive actions to better position the Group for the future including a more balanced production and delivery profile in the coming quarters," CEO Adrian Hallmark said in a statement.
Aston Martin, which has been hit by persistent depressed demand in China and supply disruptions leading to manufacturing delays, had cut its production forecast by about 1,000 vehicles in September.
The Gaydon, UK-based company reported a smaller-than-expected third-quarter loss last month, aided by strategic steps taken to mitigate losses.
The company reiterated its focus on 2025 targets, including delivering about 2 billion pounds in revenue and targeted free cash flow generation.
As part of the efforts to bolster its finances, Aston Martin also announced plans to raise about 210 million pounds through an equity and debt offering.
($1 = 0.7975 pounds)
Reporting by Raechel Thankam Job; Editing by Alan Barona
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