Ferrari quarterly earnings rise 5%, boosted by V-8 sales

November 5, 2018 13:47 CET

MILAN — Ferrari third-quarter core earnings rose 4.7 percent, helped by positive performance from across its markets and strong sales of V-8 models, the automaker said in a statement.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the July-September period rose to 278 million euros ($316 million) from 266 million. This compared with a 282-million-euro expectation from analysts, according to Refinitiv.

Sales were roughly flat at 838 million euros, slightly below expectations of 845 million euros.

Sales were driven by an 11 percent increase in demand for V-8 models led by the Ferrari Portofino. Sales of V-12 models, led by the 812 Superfast, rose 7.9 percent.

The supercar maker, spun off from parent Fiat Chrysler Automobiles, has had a run of record earnings, helped by special-edition models and a customizations program.

Investors are looking for reassurance the company can maintain its strong growth achieved under late boss Sergio Marchionne, who more than doubled the value of the group since he took it public in 2015.

The unchanged forecast for 2018 earnings of at least 1.1 billion euros leaves Ferrari with “an undemanding fourth quarter (flat year-on-year) to meet the low end of this year’s guide,” Evercore ISI analyst George Galliers said in a note.

The third quarter is the second set of results presented by new Ferrari boss Louis Camilleri, who took over in July after Marchionne’s death.

The sudden change at the top jolted shareholders who had expected Marchionne to remain at the helm until 2021.

But investors welcomed a mid-term plan presented by Camilleri in September, under which he promised 15 new models, including hybrids, an SUV and special editions in a drive to almost double earnings to between 1.8 and 2 billion euros by 2022.

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