Ferrari raises 2017 earnings target
Milan: Ferrari NV raised its 2017 profit target as roll-outs of limited-edition supercars, including the FXX K Evo racing model unveiled last week, help the Italian automaker achieve a long-held goal two years early.
Adjusted earnings before interest, taxes, depreciation and amortization will total about €1 billion ($1.63 billion), the Maranello-based manufacturer said Thursday in a statement. That’s 14% more than the 2016 figure, and compares with an earlier plan to exceed €950 million this year. Third-quarter adjusted Ebitda jumped more than 13%.
Chief executive officer Sergio Marchionne has aimed for €1 billion in operating profit since he replaced Luca Cordero Di Montezemolo at the helm of Ferrari in 2014. Reaching it before 2019 opens the way for the 65-year-old CEO to launch his final business plan for the supercar maker before he retires. The new five-year strategy, to be presented in early 2018, is set to include expansion into new segments, including sport utility vehicles, to win more customers with less-extreme models.
Still, Ferrari isn’t abandoning its most loyal aficionados, and will continue bringing out special models such as last year’s LaFerrari Aperta convertible or the FXX K Evo, which was introduced to the public at the annual Finali mondiali racing event in late October.
Ferrari, which moved its legal headquarters to the Netherlands when it was spun off from Fiat Chrysler Automobiles NV last year, has already outlined plans to bring out more high-priced, restricted-volume models this year to celebrate its 70th anniversary. The FXX-K Evo will be produced in an “extremely limited” number and destined only for competitions rather than fitted out for standard road use. The “closed-wheel laboratory car” will be aimed at “a small, highly select group of Ferrari clients: supercar enthusiasts eager to share the development of technologically innovative content,” according to Ferrari.
Ferrari’s adjusted Ebitda jumped from 634 million euros in 2013, the last full year under Montezemolo, to 880 million euros in 2016. The business plan through 2022 could include doubling operating profit, people familiar with the project said in August.
The carmaker’s shares fell 4.3 percent to 99.30 euros as of 11:59 a.m. in Milan, paring the year-to-date gain to 80 percent.
SUVs won’t play a role in Ferrari’s earnings for awhile. While the carmaker is committed to the models, it will take about 2 1/2 years to decide on their production, which will be limited to preserve exclusivity, Marchionne said in October. Bloomberg