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Abu Dhabi, UAEMonday 10 December 2018

Ferrari profits accelerate as deliveries surge

Supercar maker also forecasts it will double core earnings to €2bn no later than 2022 and become debt free a year earlier

A partially covered Ferrari at the Frankfurt Motor Show (IAA) in Frankfurt, Germany. Kai Pfaffenbach/Reuters
A partially covered Ferrari at the Frankfurt Motor Show (IAA) in Frankfurt, Germany. Kai Pfaffenbach/Reuters

Italian sports car maker Ferrari says profits last year rose 34 per cent, driven by a surge in V12 sales and vehicle personalisation.

Ferrari on Thursday reported 2017 net profit of €537 million (Dh2.45 billion), up from €400m the previous year. Shipments last year rose by 5 per cent to 8,398 vehicles, while net revenues increased 10 per cent to €3.4bn, according to AP.

Ferrari aims to top 9,000 vehicles shipments this year and is forecasting revenues above €3.4bn.

The car maker said fourth-quarter profits rose by a quarter to €136m on a 1 per cent increase in revenues to €840m. Shipments rose 4 per cent to 2,017.

Sales were flat only in China, Taiwan and Hong Kong, due to a decision to terminate the Hong Kong distributor.

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Ferrari forecast to double core earnings to €2bn no later than 2022 and become debt free a year earlier, betting on racy demand for its supercars and new launches, including a planned 4x4, Reuters reported.

The Maranello, Italy-based company gave the mid-term forecast after “thoroughly reviewing its current portfolio and all of its product development initiatives”. Shares in the group rose as much as 4.9 per cent after the release.

Ferrari reported 2017 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of €1.04bn, in line with expectations, breaching the €1bn mark two years earlier than forecast at the time of its initial public offering.