- Mercedes-Benz Group AG (OTC:MBGAF) reported earnings per share of $1.12, missing estimates and generating revenue of $38.97 billion.
- Aston Martin reported a wider first-half deficit with a 25% decrease in revenue and an operating loss increase to £134.7 million.
- Mercedes-Benz and Porsche issued profit warnings, highlighting the impact of tariffs and declining demand in China on the automotive industry.
Aston Martin Lagonda Global Holdings PLC, a luxury carmaker, experienced a 2.4% decline in its share price following a report of a wider first-half deficit and a 25% decrease in revenue to £454.4 million. The company’s operating loss increased to £134.7 million from £106.1 million the previous year. Despite these challenges, Aston Martin’s performance was relatively resilient compared to competitors like Mercedes-Benz and Porsche.
Mercedes-Benz and Porsche have both issued profit warnings due to tariffs and declining demand in China. Mercedes-Benz reported a nearly 70% drop in net profit, falling to €957 million, with a 12% sales decrease in the United States and a 19% decrease in China. Porsche faced a €400 million tariff cost in the first half of the year, adjusting its profit margin guidance to 5% to 7%.
Aston Martin attributed its struggles to a planned reduction in deliveries of its high-margin Specials models and disruptions related to new US tariffs. Wholesale volumes decreased by 4% to 1,922 vehicles, although the average selling price rose by 7% to £192,000, driven by demand for new models and customer personalization. The company’s net debt increased to £1.38 billion.
Despite these challenges, Aston Martin’s retail sales outpaced wholesales by over 40%, and new models are set for launch soon. Chief Executive Adrian Hallmark remains optimistic about the company’s future, highlighting the potential for growth with upcoming model releases.
