Ferrari lifts its profit outlook after hitting 2019 targets
Carmaker predicts earnings of up to 1.4B euros this year
Ferrari hit its recently upgraded estimate for core profit last year, helped by a jump in deliveries of its Portofino and 812 Superfast models in the fourth quarter, and raised its earnings outlook for 2020.
The luxury carmaker said adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 22 percent in the last three months of 2019 to 333 million euros ($368 million), just missing a forecast of 340 million in a Reuters poll.
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That left its adjusted core profit for the year at 1.269 billion euros, in line with an increased estimate of about 1.27 billion which the company gave in November. Its adjusted core profit margin came in at 33.7 percent versus a target of 34 percent.
The Ferrari Monza SP2 on display at the auto show in Paris in October 2018. (AP Photo/Thibault Camus)
Ferrari, which is controlled by Exor, the holding company of Italy's Agnelli family, said it planned to boost adjusted core profit to 1.38 billion to 1.43 billion euros this year compared with a previous target of above 1.3 billion euros.
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Ferrari shares were 0.5 percent lower on the Milan stock exchange immediately after the results. A trader said while the 2020 outlook was better than before, it was still conservative.
After releasing a record five new models last year -- including the F90 Stradale, the Prancing Horse's first hybrid car in series production -- Ferrari is set to slow the roll-out of new cars in the coming years.
Ferrari had said it planned to launch 15 models between 2019 and 2022, while achieving a significant increase in their average retail price.