Aston โMartin Shares Plunge After โProfit โคWarning Cites Tariff Concerns
LONDON – Aston Martin lagonda Global Holdings PLC shares tumbled overโ 7% โฃMonday morning after the luxury automaker issued aโค fresh profit warning, citingโฃ ongoing macroeconomic headwinds adnโ uncertainty surrounding โinternational trade tariffs. Theโ company now anticipates โฃa wider-than-previously-forecast loss โfor the year and has initiated a review of its cost structure and future capitalโ expenditure.
theโ revised outlookโค reflects growing anxieties aboutโ the impactโค of potential U.S. tariffs, evolving tax policies inโข Chinaโค impacting the ultra-luxury vehicle market, and โฃthe risk of further disruptions to global supply chains.This news intensifies scrutiny on Aston Martin’s turnaround efforts under Executive Chairman lawrence Stroll, and raises questions aboutโ the company’s ability to achieve profitability amidโฃ a challenging global economic landscape.
Aston Martin โขhad previously guided โขfor positive โfree cash flow in the second half of 2023, but now states it does โnot expect โto reach that milestone.Analysts had โprojected an earnings before โขinterest and taxes (EBIT) loss of ยฃ110 million ($147.8 โคmillion) for the company.โข
“The global macroeconomic environment facing the industry remains challenging,” Aston Martin stated in a release. Theโข company highlighted specific concerns regarding the economic consequences of U.S. tariffs and quota mechanisms, changes to โฃChina’s ultra-luxury car taxes, and the โpotential for increased supply chain pressures.
As of 9:15 a.m.London time, Aston Martin shares were trading approximately 7.6% lower.Year-to-date, the stock has declined โขby roughly 24%.
