Ferrari signals higher profits this year on strong demand – Reuters
- Ferrari shipped 11,155 vehicles last year
- Shipments led by V8 cars, including Roma and SF90
- Adjusted EBITDA to grow to 1.65-1.70 bln euros in 2022
- Margin hit record 35.9% in 2021, to slip this year
MILAN, Feb 2 (Reuters) – Ferrari (RACE.MI) delivered a record number of cars last year as demand for luxury vehicles surged globally despite the COVID-19 pandemic and the sports carmaker predicted an increase in its core earnings for 2022.
Shipments grew 22% to 11,155 cars last year compared to COVID-hit 2020 and were up 10% on pre-pandemic 2019, the company said on Wednesday.
All regions saw double-digit growth, supported by strong sales of 8-cylinder models, including the F8 family as well as the Roma grand tourer and the hybrid SF90 Stradale. Shipments of more powerful but also more polluting 12-cylinder models fell.
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Shipments to China, Hong Kong and Taiwan almost doubled versus the previous year.
“We carefully managed an impressive order intake in line with our strategy to pursue controlled growth and preserve brand exclusivity,” Chief Executive Benedetto Vigna said in a statement, presenting results after taking charge of the company last September with a task to lead it into a new era of cleaner, quieter and interconnected mobility.
The Italian company guided for adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of 1.65-1.70 billion euros this year, up from 1.53 billion euros ($1.73 billion) in 2021.
Last year’s result was in line with a company-provided forecast of around 1.52 billion euros, and represented a 34% increase on the previous year.
The margin on adjusted EBITDA hit a higher-than-expected record of 35.9% last year. That figure is expected to slip this year to between 34.5%-35.5% the company said.
Milan-listed shares in Ferrari erased losses after the results were published and were up 0.1% by 1255 GMT.
In a sign of a strong demand worldwide for luxury cars, Rolls-Royce, a unit of Germany’s BMW , said its sales soared 49% in 2021, to a record high of 5,586 vehicles. read more
Similarly German sportscar manufacturer Porsche, a unit of Volkwagen (VOWG_p.DE), delivered more than 300,000 vehicles last year, with an increase in all regions, especially the United States, while China became its largest single market.
However, Ferrari and other rivals in the high-performance sports car market, which include Lamborghini, also part of Volkswagen, Aston Martin Lagonda (AML.L) and McLaren, are wrestling with how to shift to battery power without losing the high performance that supports their premium pricing.
Vigna, a tech industry veteran and former top executive at chip maker STMicroelectronics (STM.BN), will unveil the company’s future strategy at a capital markets day on June 16.
Meanwhile, Ferrari, whose ‘Prancing Horse’ brand is known worldwide for roaring combustion engines, has promised its first all-electric car in 2025, while it has already rolled out three hybrid models.
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Reporting by Giulio Piovaccari
Editing by Keith Weir and Bernadette Baum
Our Standards: The Thomson Reuters Trust Principles.
