By Scott Kanowsky
Investing.com -- Shares in Aston Martin Lagonda Global Holdings PLC (LON:AML) shed over a sixth of their value on Wednesday after the sportscar maker lowered its annual earnings and sales outlook, citing higher expenses stemming from supply chain constraints.
Total wholesale volumes are seen coming in at between 6,200-6,600 units, down from Aston Martin's initial expectation for greater than 6,600.
Full-year adjusted earnings before interest, taxes, depreciation, and amortization margin is also now expected to rise in a range of 100-300 basis points. That is a decrease from its prior guidance for an uptick of 350-450 bps.
In a statement, the group said the revision reflects new supply chain and logistical disruptions it encountered in the second half. Aston Martin incurred costs of around £20M as it moved to mitigate these issues.
The firm warned that the supply chain problems will have a "more prolonged impact" on working capital than it previously assumed.
"[W]e now expect the cash inflows from more normalised working capital dynamics to only become visible towards the end of Q4 2022 and into early 2023," Aston Martin said.
Higher new investments and a £245m impact from a non-cash revaluation of some of its US-dollar-denominated debt led to Aston Martin's pre-tax loss widening to £225.9M from £97.9 in the third quarter.
Net cash interest payments on debt also registered £65M.
Meanwhile, total wholesale volumes during the three months to September 30 expanded by 3%, but executive chairman Lawrence Stroll said the supply chain issues delayed the delivery of more than 400 vehicles until the fourth quarter, costing the group £106M.
"[I]n the context of supply chain and logistics disruption as well as inflationary pressures impacting the broader automotive industry, over the last two quarters we have encountered specific supply chain challenges that have delayed our ability to meet customer demand," Stroll added.
Aston Martin shares have slumped by more than 90% over the past one-year period, despite the firm trying to solidify its finances and erase its £833.4M debt pile through a recent rights issue and a move to add Saudi Arabia's Public Investment Fund as a shareholder.