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Aston Martin Lagonda Global Holdings Plc. jumped in London trading after projecting improving profitability on rising deliveries as the British luxury-car maker works through supply-chain issues.
The manufacturer said Wednesday it will ship around 7,000 cars this year. That’s a 9% increase over 2022, when Aston roughly met its already lowered forecast. The company also reported a lower-than-expected operating loss for the full year.
"I remain highly confident that we will achieve our target to deliver 10,000 wholesales over the coming years, and with it, significantly enhanced financial performance,” Aston Chairman Lawrence Stroll said in a statement.
Once touted as a rival to Ferrari SpA, Aston is working to lower debt and has been held back by auto-parts shortages that have curbed the industry’s output.
Carmakers including Mercedes-Benz AG, Renault SA and Stellantis NV reported healthy profits in the past weeks on high prices and pent-up demand.
While the operating environment "remains volatile” with pockets of supply disruptions, Aston said it’s working with parts makers to reduce impact on performance this year. The company sees deliveries taking off in the second half of 2023, when several revamped models are expected to hit showrooms.
"We think the results, outlook, and re-confirmation of mid-term targets should be seen as encouraging progress,” Citi analyst Martin Wilkie said in a note to clients.
The shares gained as much as 8.7%. They’re still down roughly 37% over the past 12 months.
Still, Aston has struggled to deliver on a turnaround of its loss-making business. After raising £654 million ($790 million) in fresh capital and adding Saudi Arabia’s Public Investment as a new investor, HSBC analysts in January downgraded the stock, saying the carmaker may have to return to the market for another cash injection.
On Wednesday, Aston said it expects 2023 to be the final year of significant capital investments on combustion-engine technology as it gradually shifts to electrified vehicles.
