4-Aston Martin's Q2 profit beats market view on special model sales

Carmaker’s shares about 10% higher in afternoon trade Company reiterates 2024 guidance, medium-term targets (Updates share move in paragraph 2, adds CFO comments in paragraphs 9-10) July 24 (Reuters) - British luxury carmaker Aston Martin (AML.L) reported second-quarter profit above market expectations on Wednesday, powered by stronger sales to dealers of some exclusive models, as it reiterated guidance for hefty profit growth later this year. Shares in Aston Martin were up about 10% at 165 pence by 1209 GMT. Goldman Sachs analysts said in a note that the group’s stronger-than-expected performance could largely be attributed to more special models in the quarter than the brokerage had anticipated. Special editions of the Valkyrie and Valour feature among the exclusive models manufactured by the carmaker. The Gaydon, UK-based company reported an adjusted core profit of 42.3 million pounds ($54.6 million) for the three months ended June 30, down 16% year on year but well above a company-compiled estimate of 25 million pounds. An adjusted pre-tax loss of 77.9 million pounds for the quarter beat the estimated 94 million pound loss but was wider than the year-earlier 68 million pound loss, mostly due to halting production of old models ahead of the roll-out of fresh lines this year. Aston Martin said wholesale volumes will be heavily weighted to the second half of the year and reiterated its 2024 and medium-term guidance. It said first-half wholesale volumes fell 32%, hurt by the group’s transition to new Vantage and upgraded DBX707 models. Chief Financial Officer Doug Lafferty told journalists that Aston Martin would be launching its next-generation sports cars in China, hoping to turn around its fortunes in the key market where wholesale volumes fell 72% in the first half of the year. “From Q3 this year, the DB12 will be sold into China, and that will be followed by the Vantage and the Vanquish when that is launched later in the year.” ($1 = 0.7758 pounds)