Ferrari shares in reverse after CEO John Camilleri's sudden exit

Shares fell 1% at 9am in Milan on Friday, valuing the company at about $41 billion.

Ferrari's outgoing chief executive Louis Camilleri, right. Getty

Ferrari shares slipped on Friday after the sudden departure of chief executive Louis Camilleri for personal reasons, who is leaving just as the luxury carmaker seeks to boost its share of hybrid models and prepares to roll out its first SUV.

The shares fell 1 per cent at 9am in Milan on Friday, valuing the company at about $41 billion.

Chairman John Elkann, the scion of Italy's Agnelli family, will lead the company on an interim basis, Ferrari said.

According to a company source, Mr Camilleri, 65, had suffered health problems, which made it necessary for him to be hospitalised for Covid-19 in recent weeks. He is now recovering at home but his illness was not the cause of his decision to retire, the source added.

Mr Camilleri also resigned as executive chairman of Philip Morris International (PMI), the cigarette maker said separately.

Mr Camilleri was appointed to lead Ferrari in July 2018 after the sudden death of former chief executive Sergio Marchionne. During his tenure, Ferrari was one of the best performing stocks in the car sector, as demand for its high performance cars remained strong despite the coronavirus pandemic.

Under his leadership, Ferrari shares have hit record levels, with those listed on Milan bourse touching an all-time high of $221.70 last month.

Mr Camilleri was also leading an effort to expand the Ferrari vehicle line-up and the use of its brand, without undermining the exclusivity that supported its premium pricing and profit.

Citi analysts said whoever replaces Mr Camilleri would inherit a “significant legacy”.

"At the same time, Ferrari faces perhaps the biggest upheaval in its history with a number of questions around the deliverability of 2022 profit targets and more pertinently navigating the launch of the PuroSangue SUV and negotiating the transition to zero carbon emissions," Citi added.

In two-and-a-half years as chief executive, Mr Camilleri oversaw the transformation of Ferrari into a fully-fledged luxury brand. The company introduced five new models in 2019, which helped increase annual sales to more than 10,000 units for the first time.

“As a longstanding member of the Ferrari board, Louis showed an unswerving sense of responsibility ensuring continuity for our organisation, while guiding Ferrari into the future with an ambitious and far-sighted strategic plan,” Mr Elkann said in a letter to workers.

* with inputs from Bloomberg