The Italian luxury car maker Ferrari has raised its outlook for the year after reporting a better than expected 10 per cent rise in third-quarter adjusted core earnings.
The company said it now expected adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of around €850 million (Dh3.45 billion) this year, compared with a previous indication of at least €800m.
Ferrari, which was spun off from Fiat Chrysler at the start of the year, said adjusted ebitda in July-September rose to €234m, compared with €211m in a Thomson Reuters analyst consensus.
Net revenues were up 8 per cent to €783m, above expectations of €763m, while shipments rose 1 per cent to 1,978 vehicles, helped by strong sales of Ferrari’s 12-cyclinder models, especially the GTC4 Lusso and the newly launched and sold-out US$1.2m LaFerrari Aperta. It is also seeking to boost profit by widening its appeal with models like the four-seat GTC4 Lusso T with a smaller V8 engine, alongside the 488GTB. The Italian manufacturer is also producing 350 tailor-made supercars to celebrate its 70th anniversary.
Since its initial public offering last year, Ferrari has been under pressure to show that its strategy to woo the world’s elite can work without the backing of a bigger player. The chief executive Sergio Marchionne, who also runs Fiat Chrysler, is seeking to broaden the brand beyond exotic cars, although his efforts to give Ferrari the cache of luxury-goods icons such as Hermes and Louis Vuitton have so far failed to make headway.
Net industrial debt was reduced to €585m by the end of September, from €763m three months earlier. The company said it expected it to stand at less than €700m at the end of the year.
* Agencies
business@thenational.ae
Follow The National's Business section on Twitter
