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Aston Martin Posts First Operating Profit in 8 Years
Aston Martin Lagonda Ltd. reports an operating profit of £87 million ($121 million) last year, ending eight years of red ink.
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Aston Martin Lagonda Ltd. reports an operating profit of £87 million ($121 million) last year, ending eight years of red ink. The company lost £163 million ($226 million) in 2016.
The iconic British maker of high-performance luxury cars saw revenue in 2017 jump nearly 50% to a record £876 million ($1.2 billion). Retail deliveries surged 58% 5,100 units, pushed by demand for the DB11 sport coupe.
CEO Andy Palmer says results in October-December marked the company’s strongest quarter ever, with a pretax profit of £65 million ($90 million). He predicts further gains in 2018 as Aston Martin prepares for an initial public offering.
The company is targeting annual sales of 15,000 units by about 2020. That’s a year after the Aston Martin begins producing its first crossover vehicle. The model will be assembled at a factory in South Wales with capacity to produce 5,000 units annually.
Palmer says the company can be “very profitable” with annual sales of 7,000 units or more, Bloomberg News reports. But he also says the company needs a “big brother” to help with technologies related to self-driving capabilities.
Aston Martin already has partnered with Daimler AG, a 5% owner of the company, on autonomous vehicles. Palmer indicates other cooperative ventures lie ahead.
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