Trade war: Aston Martin outlines plan to beat US tariff hit as profits sink
Aston Martin Lagonda has revealed a plan to bring forward production at the beginning of next year as it looks to swerve a worse hit from US trade tariffs.
The UK luxury carmaker said it was lobbying the UK government to improve the terms of its trade deal with Donald Trump.
The company explained that, as things stand, it would have to ship more cars earlier than planned next year if it was to ease the threat to its sales and bottom line posed by the quota element of the agreement.
Auto manufacturers had initially faced down a tariff above 25% from April.
Since 30 June, that US import duty rate fell to 10% but it only applies to the first 100,000 UK-made cars which enter the US on an annual basis.
Aston said on Wednesday that the tariff chaos, coupled with weaker demand in China, meant adjusted operating profits for the year would roughly break even.
2:49
It had previously forecast a positive result.
The company, best-known for its models' starring role in the majority of James Bond movies, issued the annual profit warning followed a temporary halt to US exports amid the tariff chaos.
It resumed shipments last month.
The United States and China account for its top two export markets.
It has not been alone in issuing a warning to investors over the anticipated pressures on sales.
Aston Martin boss Adrian Hallmark described demand in China, where consumers are feeling the pinch, as "stagnant" in a call with analysts.
"The evolving and disruptive US tariff situation was unhelpful to our operations in Q2," he said.
Aston said it was reviewing its supply chain to reduce possible negative impacts such as disruption to demand and distribution.
It reported a 25% plunge in revenue to £454.4m in the six months to 30 June compared to the same period last year.
Its core profit measure was in the red to the tune of £121.5m. That was 22% up on a £99.8m loss.
Mr Hallmark said the financial performance also reflected fewer planned deliveries of its Specials models.
The company is preparing for the first customer deliveries of Valhalla, its first mid-engine plug-in hybrid electric supercar.
That is expected in the final quarter of the year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
18 minutes ago
- Reuters
Devon Energy misses quarterly profit estimates, signs gas supply deals
Aug 5 (Reuters) - Shale producer Devon Energy (DVN.N), opens new tab on Tuesday narrowly missed Wall Street estimate for second-quarter profit and said it had signed two natural gas supply deals amid growing demand for the fuel. The company will supply 50 million cubic feet per day of natgas to an undisclosed buyer over a 10-year period and will provide 65 mmcfd to CPV Basin Ranch Energy Center for a seven-year term as part of the agreemnts. Devon's deal comes a day after Coterra Energy (CTRA.N), opens new tab agreed to supply 50 mmcfd of natgas to the Permian-based energy center, as U.S. energy producers tap into surging domestic electricity consumption, as well as flourishing exports of the superchilled gas. A more than 20% fall in Brent crude prices hurt Devon's quarterly performance, with its average realized price falling to $62.97 per barrel from $78.95 a year earlier. Oil production rose more than 15% rise and natgas output jumped 22% to 1.39 billion cubic feet per day. Devon plans to boost annual free cash flow by $1 billion by the end of 2026 and cut its current-year capital expenditure forecast by $100 million to between $3.6 billion and $3.8 billion. The company expects current-year oil production to be in the range of 384,000-390,000 bpd, compared with a prior view of 382,000-388,000 bpd. The production outlook along with lower capital spending for 2025 are a sign the company's efforts to optimize portfolio are starting to bear fruit, RBC Capital Markets analyst Scott Hanold said. Oklahoma City-based Devon posted an adjusted profit of 84 cents per share for the second quarter, compared with the analysts' estimate of 85 cents, according to data compiled by LSEG.
The Independent
20 minutes ago
- The Independent
Pfizer CEO says pharmaceutical companies want to work with Trump to make medicine more affordable
Pfizer CEO Albert Bourla announced that major pharmaceutical companies are ready to work with the Trump administration to make medicines more affordable and directly available to consumers. This move comes after Trump demanded that 17 drugmakers expand direct-to-consumer options and lower prices to match those in other industrialized countries, threatening to use 'every tool' if they did not comply. Pfizer and Bristol Myers Squibb have already revealed plans to offer their blood thinner Eliquis at a lower price online, building on Pfizer's existing direct-to-consumer telehealth and prescription services. Other companies, such as Eli Lilly and Novo Nordisk, are also exploring direct access for their obesity drugs, aiming to bypass pharmacy benefit managers. Despite potential sector-specific tariffs on pharmaceutical imports, which could escalate to 250 percent, Pfizer expects to meet its financial forecasts, though experts have refuted Trump's claims of significant drug price reductions.
The Independent
20 minutes ago
- The Independent
Stanford University laying off hundreds due to Trump cuts
Stanford University is set to lay off hundreds of employees, citing 'changes in federal policy' under the Trump administration. The elite California private school laid off 363 employees last week, a university spokesperson told The Independent. The move affected roles across departments, including those working in administration, research, alumni relations and campus operations, according to the San Francisco Chronicle. 'The university is providing support resources as well as layoff benefits to eligible employees,' school officials said in a July 31 statement. 'Nonetheless, these are difficult actions that affect valued colleagues and friends who have made important contributions to Stanford.' The layoffs are the result of 'ongoing economic uncertainty' and 'anticipated changes in federal policy — such as reductions in federal research funding and an increase in the excise tax on investment income,' according to a letter from Stanford Vice President for Human Resources Elizabeth Zacharias reviewed by the Chronicle. President Donald Trump's 'Big, Beautiful Bill' — which he signed into law last month — increased Stanford's endowment tax from 1.4 percent to 21 percent, the Chronicle reports. Stanford's $37.6 billion endowment is among the largest in the country. Stanford also lost a significant amount of federal research funding as agencies like the National Institutes of Health and the National Science Foundation are impacted by ongoing funding freezes, the Chronicle reports. Stanford has also been forced to make a $140 million reduction in its general budget for the upcoming year, according to a June statement from the school's president and provost. The school officials cited 'significant budget consequences from federal policy changes.' 'These changes include reductions in federal research support and an increase in the endowment tax,' the statement reads. The Trump administration has taken aim at higher education this year, and some schools have made deals with the administration to ensure federal funding isn't withheld. For instance, Columbia University in New York City agreed to pay the Trump administration a $200 million settlement last month to prevent funding cuts over claims that the elite school failed to combat antisemitism. Columbia University has not admitted wrongdoing and 'does not agree with the government's conclusion that it violated Title VI of the Civil Rights Act,' according to a July 23 statement from the school. 'We are not, however, denying the very serious and painful challenges our institution has faced with antisemitism,' the statement continues. 'For these reasons, we took several important corrective steps in March, many of which are in this agreement, including a new provision for a liaison to the Jewish community, situated in University Life.'
