Abu Dhabi, UAEMonday 22 July 2019

Ferrari's Q2 profit surges 24%, beating analysts forecasts

The Italian car maker benefits from demand for its special editions

The LaFerrari has proved a hit for the Italian supercar company. Denis Balibouse / Reuters
The LaFerrari has proved a hit for the Italian supercar company. Denis Balibouse / Reuters

Ferrari’s second-quarter profit jumped 24 per cent as the Italian supercar maker benefited from demand for its special editions, including the US$2.1 million LaFerrari Aperta convertible, while preparing to expand beyond sports cars.

Adjusted earnings before interest, taxes, depreciation and amortization rose to €270 million (Dh1.17 billion) from €217m a year earlier, Ferrari said on Wednesday, beating the average €262m estimate of six analysts surveyed by Bloomberg. The car maker reiterated its target for 2017 profit on that basis to exceed €950m. The chief executive Sergio Marchionne said in March that the figure could reach more than €1bn.

Ferrari is considering adding a roomy four-seat “utility vehicle” as part of a major expansion push beyond its traditional supercar niche in a bid to double profit by 2022, people familiar with the matter said this week. A five-year plan that includes the model would also push annual deliveries beyond a self-imposed limit of 10,000 cars, according to the people. The company on Wednesday stuck to a target to boost deliveries this year to 8,400 vehicles.

The shares fell as much as 3.3 per cent from Tuesday’s record €92.80 and were trading down 2.6 per cent as of 11:37am in Milan.

The brand, which moved its legal headquarters to the Netherlands when it was spun off from Fiat Chrysler Automobiles last year, has already outlined plans to bring out more limited-edition models this year to celebrate its 70th anniversary. Mr Marchionne, 65, is set to present his final business strategy in early 2018 for both Ferrari and Fiat Chrysler, which he also runs as the chief executive. He intends to retire from the two manufacturers in coming years.

* Bloomberg

Updated: August 2, 2017 05:46 PM