EPaper

Ferrari revs up its earnings outlook

Daniele Lepido

Ferrari has raised its outlook on strong demand for high-margin models like its new €390,000 Purosangue crossover.

The Italian luxury-car maker expects adjusted earnings before interest, taxes, depreciation and amortisation of as much as €2.18bn this year, up from €2bn announced in June.

It also reported fourth-quarter sales and operating profit that beat analyst estimates.

“Despite a complex global macro-scenario, we look ahead with great confidence,” CEO Benedetto Vigna said on Thursday, adding that the company is seeing “persistently high demand for our products worldwide”.

Ferrari has hiked prices of some of its models and is benefiting from wealthy buyers less acutely affected by soaring inflation and rising interest rates.

The manufacturer is preparing to shift to electric vehicles and turn its historic factory in northern Italy into a hub for battery-powered cars.

Ferrari rose as much as 2.3% in Milan on Thursday. Its shares have climbed 17% this year.

The carmaker’s unit sales rose by nearly a fifth last year, with growth strongest in China and the Americas. Ferrari said it expects to generate about €5.7bn in revenue in 2023.

The first fully electric Ferrari is expected in 2025 and batteryonly make as well as plug-in hybrid models are slated to dominate the company’s portfolio in the second half of the decade. Three hybrid models accounted for 22% of shipments last year.

The Italian manufacturer in September unveiled the Purosangue, which looks more like a sports utility vehicle than the company’s traditional portfolio of low-slung, two-door sports cars.

The move is expected to broaden its customer base.

Ferrari’s fourth-quarter adjusted earnings before interest, taxes, depreciation and amortisation rose to €469m, beating the average analyst estimate of €451m.

Revenue climbed to €1.37bn, slightly above the €1.29bn projected by analysts.

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2023-02-03T08:00:00.0000000Z

2023-02-03T08:00:00.0000000Z

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