Aston Martin Lagonda Fell in Q3 Amid Supply-chain Issues

The UK luxury-car maker Aston Martin Lagonda Global Holdings PLC (AML) lost more than double in the third quarter with 225.9 million ($259.4 million), contrary to £97.9 million loss in the year before.

AML reflected £245 million negative non-cash foreign exchange revaluation debt in USD during the nine months that the pound tumbled against the dollar.

AML Cuts Wholesale Delivery Outlook

Aston Martin warned on Wednesday that its margins would be hurt by the supply-chain issue and ultimately cut its delivery outlook for 2022.

The British company also said that the supply-chain predicament, which was caused by the pandemic and Russian-Ukrainian war, was inducing a “more prolonged” impact on their working capital than they had previously assumed.

According to AML’s Chief Executive Officer Amedeo Felisa, “Whilst (supply chain issue) has created short-term impacts on our performance, I am confident that with the actions we are taking, we will exit the year in a stronger position to deliver on our goals for 2023 and beyond.”

Car Parts Shortage Leads to AML’s Delay in Delivery

The London-listed company now expects to deliver only 6,200 cars, which was short by 400 units of its previous projection of more than 6,600.

The missing 400 units were a result of a car parts shortage which prevented AML from shipping their target number in the third quarter.

AML’s Executive Chairman Lawrence Stroll stated, “Although these headwinds, which are already improving in Q4, have disrupted our near-term financial performance and modestly impacted our full year guidance, the medium and long-term outlook is robust.”

Aston Martin has been struggling to raise their output and lower its debt but is still confident in a strong demand for luxury cars. This was after the luxury car maker lowered its debt to 892 million pounds from £833 million at the end of last year.

AML, once acknowledged as a rival to Ferrari NV, experienced a number of setbacks since its 2018 IPO and had sought relief from Canadian Billionaire Stroll, who in turn answered their call by injecting cash into the troubled company.