Losses soar as demand dries up for Aston Martin’s cars

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"1">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>The number of vehicles sold by Aston Martin almost halved in the first three months of the year&comma; as the luxury carmaker was hit by the beginning of the coronavirus crisis&period;<&sol;p>&NewLine;<p>The company said it had sold 578 vehicles in the first quarter&comma; down from 1&comma;057 in the same period last year&period;<&sol;p>&NewLine;<p>It caused loss after tax to soar to £118&period;9 million&comma; up from £17&period;3 million the year before&comma; on revenue of £78&period;6 million&comma; &lpar;€89&period;1m&rpar; down 60&percnt;&period;<&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;Covid-19 and the resulting global economic shutdown has had a material impact on our performance this quarter&comma;”<&sol;i> said Dr Andy Palmer&comma; president and group chief executive&period;<&sol;p>&NewLine;<p>All its manufacturing sites in the UK were closed from March 25&comma; and 93&percnt; of its network of dealers shut their doors at some point during the first quarter&period; Unsurprisingly&comma; demand from dealers had been hit during the crisis&period;<&sol;p>&NewLine;<p>Sales in China dropped by 86&percnt;&comma; with the Europe&comma; Middle East and Africa region dropping 30&percnt;&period; Sales tumbled by 57&percnt; in the Americas&period;<&sol;p>&NewLine;<p>The UK was more resilient&comma; falling a mere 3&percnt;&period;<&sol;p>&NewLine;<p>However&comma; the company revealed what could be the first shoots of recovery&period; All 18 of its dealerships in China have reopened&comma; and more than 15&percnt; of the global network are &OpenCurlyDoubleQuote;<i>fully open<&sol;i>”&period;<&sol;p>&NewLine;<p>On Monday it started producing bodies for its first luxury SUV at the St Athan factory&comma; which opened last week&period;<&sol;p>&NewLine;<p>Despite positive signs&comma; most of Aston Martin’s staff are still furloughed&comma; being supported by a government pledge to cover 80&percnt; of their salaries&period;<&sol;p>&NewLine;<p>Its factories are only working to fulfil the orders they already have&period;<&sol;p>&NewLine;<p>The company had already been struggling before the crisis hit&comma; and its share price is down 93&percnt; compared to when it listed in October 2018&period;<&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;It is worth noting the car manufacturer had problems before the health crisis&comma; and that’s why Aston Martin’s share price was hit so hard amid the Covid-19-related sell-off&period; The group issued profit warnings in January 2020 and in July 2019&comma;”<&sol;i> said CMC Markets analyst David Madden&period;<&sol;p>&NewLine;<p>It had forced the carmaker to embark on a plan to &OpenCurlyDoubleQuote;reset and safeguard” its long-term future&period;<&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;Although there is still much uncertainty around the duration of the pandemic and the shape of the economic recovery&comma; we remain focused on and excited about our plans&comma;”<&sol;i> Dr Palmer said&period;<&sol;p>&NewLine;<p>Aston Martin withdrew its financial guidance for the year&period;<br &sol;>&NewLine;Shares rose around 0&period;5&percnt; on the news&period;<&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68ed2e62626be">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; 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