Ferrari's Q1 profit soars as it sells out most of 2018 cars

Italian supercar manufacturer Ferrari sold out most of its models for 2018 and a part of next year's models.
Italian supercar manufacturer Ferrari sold out most of its models for 2018 and a part of next year's models.PHOTO: REUTERS

MILAN • Ferrari's profit exceeded expectations as the Italian supercar manufacturer sold out most of its models for 2018 and a part of next year's models.

Chief executive officer Sergio Marchionne said the Italian company's production is almost at full capacity for this year and part of the next. There is still availability just for the GTC4 Lusso family car, he said, speaking on a call with analysts. "Everything else is pretty well gone," Mr Marchionne said.

Ferrari shares advanced as much as 6.6 per cent to a record €112.25 yesterday in Milan, giving the company a market value of €20.7 billion (S$31.9 billion).

The Maranello, Italy-based company, spun out of Fiat Chrysler Automobiles, on Thursday had reported adjusted earnings before interest, taxes, depreciation and amortisation jumped 13 per cent to €272 million in the first quarter. That beat the €262 million average of eight analysts surveyed by Bloomberg.

Mr Marchionne, who has also helmed Fiat for the past 14 years, is working on his final business plan for the race-car maker before he retires. The five-year strategy will be presented in September. It will include details for the iconic Italian brand's expansion into new segments, including sport utility vehicles and electric hybrid cars.

Ferrari is testing a petrol-electric hybrid car "you could run silently," Mr Marchionne said in an interview last month.

  • 13%

    Surge in Ferrari's Q1 adjusted earnings before interest, taxes, depreciation and amortisation to €272 million.

While Ferrari has no plans to produce a fully-electric car before 2022, the company is developing vehicles that will show "the full power of electrification", Mr Marchionne told Bloomberg Television.

The shift comes as the manufacturer is targeting annual sales exceeding a self-imposed 10,000-car limit that until now has enabled it to operate under less-stringent fuel-economy rules.

Fuelling growth, Ferrari has flagged that profits will rise to at least €1.1 billion this year and to €2 billion by 2022.

Mr Marchionne said Ferrari is not considering buying another car brand and could in theory acquire non-auto brands in the luxury-goods sector.

Still there is no plan at the moment, he said.

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A version of this article appeared in the print edition of The Straits Times on May 05, 2018, with the headline 'Ferrari's Q1 profit soars as it sells out most of 2018 cars'. Print Edition | Subscribe