EXCEEDING YOUR EXPECTATIONS
Ferrari NV’s profit exceeded expectations as the Italian supercar manufacturer sold out most of its models for 2018 and a part of next year.
Chief Executive Officer Sergio Marchionne said the Italian company’s production is almost at full capacity for this year and part of 2019. There is still availability just for the GTC4 Lusso family car, he said, speaking on a call Thursday with analysts.
“Everything else is pretty well gone,” Marchionne said.
Ferrari shares advanced as much as 6.6 percent to a record 112.25 euros Friday in Milan, giving the company a market value of 20.7 billion euros ($24.7 billion). They rose Thursday in the U.S. following the CEO’s comments, which came after the close of European trading.
The Maranello, Italy-based company, spun out of Fiat Chrysler Automobiles NV, earlier on Thursday had reported adjusted earnings before interest, taxes, depreciation and amortization jumped 13 percent to 272 million euros ($326 million) in the first quarter. That beat the 262 million-euro average of eight analysts surveyed by Bloomberg.
Marchionne, who’s 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’ll include details for the iconic Italian brand’s expansion into new segments, including sport utility vehicles and electric hybrid cars.
Ferrari is testing a gasoline-electric hybrid car “you could run silently," Marchionne said in an interview last month. 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,” 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. Fueling growth, Ferrari has flagged profits will rise to at least 1.1 billion euros this year and to 2 billion euros by 2022.
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.
