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(Bloomberg) -- Aston Martin Holdings Ltd. returned to profit and nearly doubled revenue in the second quarter with the British luxury-auto maker buoyed by cost cuts and robust demand for the new DB11 sports car.
Pretax earnings totaled 15.2 million pounds ($19.5 million) compared with a 52.6 million-pound loss a year earlier, marking the third consecutive quarter that Aston Martin reported a profit, the Gaydon, England-based manufacturer said Friday in a statement. Revenue surged to 222 million pounds from 119.2 million pounds, lifted by higher deliveries and selling prices on the back of the DB11.
“There’s a possibility, an increasing possibility, that we might be able to report a profit on a full-year basis this year already,” Chief Financial Officer Mark Wilson said in an interview. Longer term, the ramifications of Brexit on trade and possible tariffs remain difficult to predict, since the outcome of government talks on the U.K.’s departure from the European Union is a “big unknown,” he said.
Aston Martin, whose high-end sports cars featured in James Bond films, has been eliminating jobs and and expanding its model range to reverse six years of losses. In a bid to follow a trail blazed by Italian rival Ferrari NV, the U.K. manufacturer may consider an IPO on the London Stock Exchange as early as next year, people familiar with the matter said in May.
“It’s a natural point of speculation” given the company’s ownership structure, Wilson said. A decision on a share sale would have to be made by Aston Martin’s shareholders and not the management board, he said. The carmaker’s owners include Italian private equity company Investindustrial SpA and a Kuwaiti investment consortium, while Mercedes-Benz parent Daimler AG owns a small stake.
Chief Executive Officer Andy Palmer, who took charge three years ago, is pushing to widen the brand’s appeal. The company plans to start production of the family-friendly DBX crossover as well as an electric version of the Rapide coupe in 2019. Other models in the works include special editions of the Vanquish sports car line.
Aston Martin lifted its full-year forecast for adjusted earnings before interest, taxes, depreciation and amortization to 175 million pounds from an earlier prediction of 170 million pounds. First-half profit on that basis surged almost fivefold to 93 million pounds. Six-month deliveries jumped 67 percent to 2,439 cars, and the average selling price excluding special editions rose 25 percent to 149,000 pounds.
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