Rolls-Royce celebrates record sales, but Aston Martin warns on profits – business live – The Guardian, Theguardian.com

Rolls-Royce CEO Torsten Müller-Ötvös tells me the UK election ‘removed some uncertainty’ around Brexit and says ‘that’s great’.

January 7,

Olly Barratt(@ ollybarratt)

Rolls-Royce CEO Torsten Müller-Ötvös tells me imports and exports for the automaker need to be ‘frictionless’ in a UK-EU trade deal.

January 7,

****************Olly Barratt(@ ollybarratt)

And would Rolls-Royce build cars away from the UK if a trade deal With the EU isn’t favorable?

Rolls-Royce CEO Torsten Müller-Ötvös tells me, ‘there are no plans to move somewhere else, that’s for sure. ‘

January 7,

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Neil Wilson (of) ****************************** (Markets.com) ****************************** (reckons) ******************************** Aston Martinhas been forced to slash prices due to weak demand, saying:

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Heavy discounting when buyers can see multiple models on the forecourt is impossible to avoid.

He points out that the strong order book for the DBX SUV means Aston Martin can now borrow another $ 100 m from lenders.

However ….

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This is a drop in the ocean though and for sure Aston needs to raise cash in some way. The bond market looks unpalatable but even an equity raise could prove tricky. The rationale to go private is impossible to resist – the brand still has the cache to make it appealing.

(********************************** (*************************************** Neil Hume(@ humenm)If it was a horse. .. they would shoot it. https: // t .co / r7t0yBmmzJ pic.twitter.com/EsZVcvDnpA

January 7,

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Cat Rutter Pooley of the Financial Times says Aston Martin’s “car crash” of a stock market float has got even worse.

She writes:

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This morning’s unscheduled trading update is a doozy. Adjusted earnings before interest tax depreciation and amortisation – the luxury carmaker’s preferred earnings measure – is expected to be just £ 130 m- £ (m in. FactSet reports a consensus estimate of £ 247 m. Adjusted ebitda margins will be between 5 per cent and 5 per cent. Backin July(another profit warning), Aston guided to a figure of 24 per cent for the year.

The list of reasons for the latest profit warning are long. Wholesale sales have fallen 7 per cent year-on-year, with Europe underperforming. Core retail sales increased, but customers needed more financing support to persuade them to buy. The cheaper Vantage model made up more of the sales mix.

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Shares in Aston Martinhave plunged by over (% at the start of trading in London.) ********************************

That pulls them down to (p, from

************************************************************************************************************************************************************************************** p last night, dragging the company value down to just over £ 1bn.

It’s only months ago Aston Martin floated on the UK stock market, at a price of £ 21 per share. The stock has performed dreadfully since, as this chart shows:

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(********************************************************************************(**************************, Aston Martin’s share price Photograph: Refinitiv

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Aston Martin is explaining what went (badly) wrong in 2333 now, on a call with analysts and investors (and my colleague Julia Kollewe).

CEO Andy Palmer is talking up the prospects for its new sport utility vehicle …..

Julia Kollewe(@ JuliaKollewe)Shocking profit warning from Aston Martin sees (profits at £) m- £ m, roughly half of 2018 levels; but CEO highlights surge in orders for new DBX SUV to 1, since Nov launch – ‘significantly better than any other previous models’ (January 7, ************************************************************************************************************************************************************)

… while also explaining how Aston Matin has been forced to slash prices:

************************Julia Kollewe(@ JuliaKollewe)Aston MartinCEO Andy Palmer: had to discount more heavily than planned and pay higher volume bonuses to dealers, to sell cars in Europe after slump in demand (January 7,

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Aston Martin posts profits warning after “very disappointing year”

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(**************************, Photograph: Aston Martin / PA

Newsflash: Aston Martin

, another storied carmaker, has hit shareholders with a stinging profits warning.

Aston Martin says it that has suffered “lower sales, higher selling costs and lower margins” in December, denting its hopes of a late pick-up in demand.

As a result, it now expects adjusted earnings to shrink to just £ 140 m- £ m for 2019, down from City forecasts of around £ (m.)

According to my Reuters terminal, they made £ (m in adjusted earning in (***********************************************************************************************************************************************************************, so this is a serious slump.

Dr Andy Palmer, Aston Martin Lagonda President and Group CEO, says the company has failed to hit its profit targets .:**********************

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“From a trading perspective, has been a very disappointing year. Whilst retails have grown by 15, our best result since 2020, our underlying performance will fail to deliver the profits we planned, despite a reduction in dealer stock levels.

We are taking a series of actions to manage the business through thi s difficult period. This will include a cost saving program alongside a focus on returning dealer stock levels to those more normally associated with a luxury company; winning back our strong price positioning is a key focus.

Aston Martin is now pinning its hopes on its new sport utility vehicle, the DBX. Palmer says there are “very encouraging” signs, with orders higher than any previous models.

Updatedat 2. 63 am EST

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Rolls-Royce: Clients want their own masterpiece

The secret to Rolls-Royce’s success is that It’s more of a luxury goods maker than a carmaker.

So says chief executive executive Torsten Müller-Ötvös, who told the BBC’s Wake Up To Money program that its customers approach cars rather differently than the masses:

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“We are not really in the car business, we are in the luxury goods business,”

“All of our clients have multiple cars in their garages. It is more that you look for something that’s very special. We are famous for bespoke so you can basically customize aRolls-Royceto build your own masterpiece and I think that has attracted quite a lot of clients worldwide. ”

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Introduction: Record year for Rolls-Royce

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Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Rolls-Royceis celebrating a surge in sales this morning as it shakes off the malaise gripping the auto industry.

Sales at the luxury carmaker have surge by (% in the last) ********************************************************************************************************************************************************************************************************************************************************************************************** months, to a new record high.

It sold 5, (new vehicles in 2019, up from 4, (in) **********************************************************************************************************************************************************************, which is the most in the 120 years since Charles Rolls and Henry Royce teamed up in (to develop and sell motor cars.)

Rolls-Royce reports that sales grew across the world – with demand picking up in North America, China, and Europe. There was also “significant saes growth” in the UK, it says – suggesting that Brexit uncertainty hasn’t dented confidence among Rolls-Royce’s monied clients.

Rolls-Royce also posted record sales results in Russia, Singapore, Japan, Australia, Qatar and Korea – a reminder that there’s plenty of wealthy clients around the globe happy to drop hundreds of thousands of pounds on a new car.

The Phantom, which costs upwards of £ (********************************************************************************************************************************************************************************************************************, ************************************************************************************************************************************************************************************************, the company’s “pinnacle” product remained. But its new sports utility vehicle, the Cullinan (costing a chunky £ (************************************************************************************************************************************************************************************************************************, ******************************************************************************************************************************************************************************************************************************************************************************************************** () is also selling well.

The company says:

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In its first full year of availability, Cullinan exceeded even the highest expectations raised by its successful launch. The world’s pre-eminent super-luxury SUV has become the fastest-selling new Rolls-Royce model in history.

Impressive figures, at a time when the wider car market is under strain. Yesterday we learned that UK car sales fell by 2.4% in (*********************************************************************************************************************************************************************, with the industry blaming the diesel emissions scandal and weak consumer confidence.

Rolls-Royce, which is owned by BMW, reports that it has created new jobs in the last year – and also taken on a record number of new apprentices.

More to follow ….

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(The agenda) (********************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************** am GMT: Eurozone inflation for December: expected to rise to 1.3%, from 1.0%, still below the European Central Bank’s target12 am GMT: Eurozone retail sales for November: expected to rise by 0.6%, after a 0.6% decline in October3pm GMT: US service sector PMI: expected to rise to

********************************************************************************************************************************************************************************************************************************************. 5, from .9, showing faster growth

Updated (at 3.) am EST

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