(Reuters) -British luxury carmaker Aston Martin on Wednesday warned that higher costs from global supply chain and logistical disruptions would hurt its margins, and lowered its wholesale delivery volume outlook for 2022.
Aston Martin said the snags were also having a “more prolonged” impact on working capital than it previously assumed, and cut its adjusted earnings before interest, tax, depreciation and ammortization (EBITDA) margin expansion outlook to growth of about 100-300 basis points from roughly 350 to 450 points previously.
Carmakers and manufacturers globally have been hurt by long-running issues with supply of parts and chips used in production during the pandemic, and those woes were only made worse after Russia’s invasion of Ukraine.
“Whilst (supply chain issue) has created short-term impacts on our performance, I am confident that with the actions we are taking, we will exit the year in a stronger position to deliver on our goals for 2023 and beyond,” Chief Executive Officer Amedeo Felisa said.
The London-listed company now expects to deliver 6,200-6,600 vehicles this year from more than 6,600 vehicles forecast earlier.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Dhanya Ann Thoppil and Rashmi Aich)