After years of losses, Aston Martin is profitable once again, thanks to cost-cutting measures and a surge in sales of its new DB11 luxury sports car.
And some say the British luxury carmaker, made famous by James Bond’s 1960s DB5 sports cars, is driving towards an initial public offering. Earlier this year, Bloomberg reported the company could file for an IPO on the London Stock Exchange as early as next year.
Aston Martin Holdings reported Friday pre-tax profits of £15.2 million ($19.58 million) on revenues of £222 million ($286 million) , compared with aa pre-tax loss of £52.6 million ($67.76 million) on revenues of £119.2 million ($153.56 million) in the prior-year quarter., according to Aston Martin. This is the company’s third successive quarter of pre-tax profit.
The 104-year old firm was unprofitable for six years before DB11 sales and a restructuring and pushed the company back into the black in 2017.
Profit in the first six months of the year jumped nearly five times, thanks to a 67% percent spike in deliveries. Profits were also boosted by a higher average selling price.
Improving performance reflects rising demand for the company’s new DB11 model, as well as for special edition vehicles and the ongoing benefits from its restructuring, said CEO and President Andy Palmer, who took over the top spot at the company three years ago. The average selling price per model, excluding special editions, rose 25% to £149,000 ($191,000), principally driven by DB11, Aston Martin said.
The company’s quarterly earnings were also boosted by the launch its a 4-liter twin turbo V8 variant of the DB11, which reached a top speed of 187 miles per hour. The company announced in the third quarter plans for its first all-electric model, a limited edition RapidE, which will go into production in 2019.