Luxury carmaker Aston Martin slumps 6% as losses nearly double

LONDON — Luxury carmaker Aston Martin on Wednesday reported widening losses in the first quarter, as the company stopped production of its core models ahead of a launch a new range of vehicles later this year.

Shares plunged more than 12% in early deals in London, before paring losses to 6.4% by 2:25 p.m.

Adjusted loss before tax nearly doubled to £110.5 million ($137.8 million) compared to a loss of £57.3 million in the previous year. Analysts had expected a £93 million first-quarter loss, according to Reuters.

Revenue fell 10% to £267.7 million, while net debt increased 20% to £1.04 billion. The company's hefty debt pile is a long-running concern for investors which has contributed to a steep fall in Aston Martin's share price since its listing in 2018.

Analysts at Jefferies noted the "big miss across metrics," flagging a 26% drop in volumes.

Aston Martin said Wednesday that the delivery of four new models in 2024 would power "significant growth" in the second half of the year and beyond.

"Our first quarter performance reflects this expected period of transition, as we ceased production and delivery of our outgoing core models ahead of the ramp up in production of the new Vantage, upgraded DBX707 and our upcoming V12 flagship sports car which we've confirmed today," Chairman Lawrence Stroll said.

Stroll added that Aston Martin had made a "significant step" in strengthening its balance sheet in the quarter, as it completed a refinancing with improved terms on five-year senior secured notes following a credit rating upgrade.

"Aston Martin will be uniquely positioned with a fully reinvigorated core range of models by the end of the year," the company said in a statement.

By region, wholesale volumes slumped by 35% in the Americas,