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| Aston Martin warns on profits but Rolls-Royce sales surge | Aston Martin warns on profits but Rolls-Royce sales surge |
| (32 minutes later) | |
| Aston Martin, the luxury British carmaker famed for kitting out James Bond, has issued a profit warning after a "very disappointing" 2019. | Aston Martin, the luxury British carmaker famed for kitting out James Bond, has issued a profit warning after a "very disappointing" 2019. |
| Shares in the 106-year-old firm plunged by as much as 16% after it said annual earnings were expected to fall by nearly half from a year earlier. | Shares in the 106-year-old firm plunged by as much as 16% after it said annual earnings were expected to fall by nearly half from a year earlier. |
| But the fortunes of BMW-owned rival Rolls-Royce were very different. | But the fortunes of BMW-owned rival Rolls-Royce were very different. |
| Rolls-Royce, the car of choice for those who like to be chauffeured, sold a record 5,100 vehicles last year. | Rolls-Royce, the car of choice for those who like to be chauffeured, sold a record 5,100 vehicles last year. |
| Profits stall | Profits stall |
| In a trading update, Aston Martin said the "challenging trading conditions highlighted in November continued through the peak delivery period of December resulting in lower sales, higher selling costs and lower margins". | In a trading update, Aston Martin said the "challenging trading conditions highlighted in November continued through the peak delivery period of December resulting in lower sales, higher selling costs and lower margins". |
| It said core retail sales - which covers sales from Aston Martin dealers to consumers - were up 12% from a year earlier. However, wholesale volumes - which covers how many cars the dealers are ordering from Aston Martin itself - were down 7% to 5,809. | |
| "From a trading perspective, 2019 has been a very disappointing year," said Aston Martin chief executive Andy Palmer. | "From a trading perspective, 2019 has been a very disappointing year," said Aston Martin chief executive Andy Palmer. |
| The company said it was expecting earnings of between £130m and £140m, well below the £247.3m it reported last year. | The company said it was expecting earnings of between £130m and £140m, well below the £247.3m it reported last year. |
| When Aston Martin listed its shares on the London Stock Exchange in October 2018, its shares were priced at £19 each. However, the latest bad news has now dragged the share price down to about £4.50. | When Aston Martin listed its shares on the London Stock Exchange in October 2018, its shares were priced at £19 each. However, the latest bad news has now dragged the share price down to about £4.50. |
| "It is remarkable that a company with such a strong brand can consistently issue bad news," said Russ Mould, investment director at AJ Bell. | "It is remarkable that a company with such a strong brand can consistently issue bad news," said Russ Mould, investment director at AJ Bell. |
| "Aston Martin has been one of the biggest flops on the stock market in living memory and today's trading update does nothing to improve its tarnished reputation. | "Aston Martin has been one of the biggest flops on the stock market in living memory and today's trading update does nothing to improve its tarnished reputation. |
| "The big question is why wealthy people aren't buying its luxury cars. Working for this company should be a marketeer's dream, but the team responsible for attracting customers clearly haven't got the formula right." | "The big question is why wealthy people aren't buying its luxury cars. Working for this company should be a marketeer's dream, but the team responsible for attracting customers clearly haven't got the formula right." |
| Global appeal | Global appeal |
| Rolls-Royce boss Torsten Müller-Ötvös told the BBC that a big driver of its higher sales was the launch of the Cullinan SUV, which he said now had "very stable, robust" orders. | Rolls-Royce boss Torsten Müller-Ötvös told the BBC that a big driver of its higher sales was the launch of the Cullinan SUV, which he said now had "very stable, robust" orders. |
| But he said sales were not expected to grow at the same rate in 2020. | But he said sales were not expected to grow at the same rate in 2020. |
| Part of the difference between the successes of the two brands could come down to how they define themselves. | Part of the difference between the successes of the two brands could come down to how they define themselves. |
| "We are not really in the car business, we are in the luxury goods business," Mr Müller-Ötvös said. | "We are not really in the car business, we are in the luxury goods business," Mr Müller-Ötvös said. |
| "We are famous for bespoke, so you can basically customise a Rolls-Royce to build your own masterpiece, and I think that has attracted quite a lot of clients worldwide." | "We are famous for bespoke, so you can basically customise a Rolls-Royce to build your own masterpiece, and I think that has attracted quite a lot of clients worldwide." |