StockMarketWire.com - Aston Martin fell sharply after warning on profits as economic uncertainty weighed on performance in its wholesale business.

For fiscal 2019, the company said it expected to report adjusted earnings (EBITDA) margin of about 20% and adjusted operating (EBIT) margin of about 8% blaming an uncertain macroeconomic backdrop that had weighed on wholesale growth and a £19m writedown of a commercial contract.

The company expects wholesales to be between 6,300-6,500 vehicles for fiscal 2019 as 22% fall in UK growth in the second quarter of the year from a year earlier hurt performance, with headwinds likely to continue for the remainder of the year.

The company also had to set aside £19m against consultancy income recognised in Q2 2018 amid significant doubt over whether it would recover the outstanding value of the contract.

'Whilst retails have grown by 26% year-to-date, our wholesale performance is adversely impacted by macro-economic uncertainty and enduring weakness in UK and European markets,' said Dr Andy Palmer, Aston Martin Lagonda President and Group CEO.

'We are disappointed that short-term wholesales have fallen short of our original expectations, but we are committed to maintaining quality of sales and protecting our brand position first and foremost.'

'We are today taking decisive action to manage inventory and the Aston Martin Lagonda brands for the long-term. We remain focused on the successful execution of the Second Century Plan and on delivering sustainable long-term growth.'

Interim Results for the six months to 30 June 2019 will be announced on 31 July 2019, Aston Martin said.


At 9:29am: [LON:AML] Aston Martin Lagonda share price was -236.1p at 798.9p



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