German Manager Magazin: Ferrari: Luxury sports car maker shines with 40 percent return, Benedetto Vigna raises forecast002643

After a decent run in the past quarter, the luxury sports car maker Ferrari is expecting slightly more profit for the full year than before. CEO Benedetto Vigna (54) now expects earnings before interest, taxes, depreciation and amortization adjusted for special effects of 2.19 to 2.22 billion euros, as the Italians announced on Wednesday in Maranello. So far, 2.13 to 2.18 billion were in the plan.

However, analysts already had a value at the upper end of the new range on the slip. The share

lost 2 percent in Milan. At EUR 284.20, the paper is still up around 42 percent this year. At the beginning of 2019, the price was still under 100 euros. Investors appreciate the high margins of the Italian high-end manufacturer, which can usually demand high prices from wealthy customers even in weaker times.

The Ebitda margin climbed to 40 percent in the second quarter from 34.6 percent in the same period last year. Based on earnings before interest and taxes (EBIT), Ferrari achieved a margin of 29.7 (25.0) percent. For comparison: The to VolkswagenGroup-owned luxury brand Lamborghini achieved an operating return of 32.1 percent in the first half. Porsche ranked at 18.9 percent.

In the second quarter, however, deliveries fell by 2 percent to 3392 cars. Nevertheless, Ferrari increased sales by 14 percent to 1.47 billion euros. In addition to a larger proportion of more expensive cars, higher income from extra equipment and higher prices also had an impact. In addition, the company earned more from sponsorship deals. The bottom line is that net profit climbed by a third to 334 million euros.

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