Profits down?!

Ferrari Reports 11% Profit Drop Last Year but Raises Outlook
By The Associated Press

Feb. 4, 2020, 6:48 a.m. ET
MILAN — Italian luxury sports car maker Ferrari on Tuesday reported that its profits last year sank 11% as it shifted its geographical footprint, but raised its forecasts for 2020.

Ferrari said net profit fell to 699 million euros ($772 million) from 787 million euros the previous year. Shipments rose 9.5% to 10,131 vehicles, while net revenues rose 10 % to 3.76 billion euros, beating forecasts of 3.5 billion euros.

Ferrari upgraded its revenue forecast to over 4.1 billion euros, from 3.8 billion euros outlined in its business plan.

Shipments to the Americas shrank by 3% to 2,900 vehicles, which Ferrari said was part of a planned geographic shift. At the same time, shipments to the largest market, Europe and the Middle East, rose by 16%, to 4,895 vehicles, and to greater China by 20% to 836 cars.

Engine revenue was down by a third due to lower sales at Maserati.

The company said fourth-quarter profits dropped 13% percent to 166 million euros.

 

https://corporate.ferrari.com/sites/ferrari15ipo/files/2020_02_04_-_ferrari_fy_2019_results_press_release.pdf

 

One thing to keep in mind is Ferrari is phasing out providing engines to Maserati. They have 100 million euro less this year vs last year in revenue alone just from winding down that agreement.

That alone makes up for the profit shortfall.

They delivered their last tipo f139 last year, the tipo 154s are near the end of its runs. (Probably another 2 years at most.)

 

Camilleri also told investors that Ferrari was investing to buy land adjacent to its Maranello headquarters, where it planned to develop future technologies. He said no new manufacturing capacity was needed ‘’for the foreseeable future,'' with current facilities able to build up to 15,000 vehicles if the company so chooses.

You mean if the shareholders choose?

Hated the IPO then and still do today.

I've come up with a name for the inevitable cross over follow up to Ferrari's SUV.

I present to you 'LaHomer Apreta'