MILAN (Reuters) – Ferrari (RACE.MI) reported a 7 percent rise in second-quarter adjusted core earnings and confirmed its outlook for the year as a new boss takes charge at the Italian supercar maker following the death of Sergio Marchionne.
FILE PHOTO: The Ferrari Insignia is seen at the back of a Ferrari Testarossa during a media tour of the Fullerton Concours d’Elegance in Singapore, June 29, 2018. REUTERS/Loriene Perera/File Photo
The release marks the first set of results to be presented by new CEO Louis Camilleri, who was appointed on July 21 to succeed Marchionne who fell seriously ill and later died after suffering complications following surgery.
Shareholders will vote on Camilleri’s appointment as executive director in September.
The sudden change jolted investors who had expected Marchionne, who nearly tripled Ferrari’s value since taking it public in 2015, to stay on as CEO and chairman until 2021.
It also left Camilleri, 63, to finish scripting a midterm strategy that is due in September and is meant to show how the company known for its racing pedigree and roaring combustion engines would shift towards making an SUV and electric cars.
Ferrari said in a statement it “remains committed to pursuing the values (Marchionne) embodied and achieving his vision with unabated determination, ambition and passion, in line with Enzo Ferrari’s legacy”.
The company said it would hold a capital markets day on Sept. 17-18 at its headquarters in Maranello, Italy, to present the strategy it will pursue to meet the midterm financial goals announced earlier this year.
In February, Ferrari said it would double core earnings to 2 billion euros by 2022 by pushing into hybrids, SUVs and new special editions and by expanding a customization program.
In the April-June quarter, the company said adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose to 290 million euros ($339 million) from 270 million euros a year earlier, helped by sales of the 812 Superfast model and cars from the 488 family.
This was roughly in line with a Thomson Reuters SmartEstimate of 286 million euros.
Profit margins rose to 31.9 percent from 29.4 percent.
Sales were slightly down at current currencies to 906 million euros, below expectations of 921 million euros.
Net industrial debt rose to 472 million euros at the end of June, from 413 million euros three months earlier.
Milan-listed shares in Ferrari were volatile after the results release and were down 0.4 percent by 1050 GMT compared with a 0.7 percent fall in Milan’s blue-chip index .FTMIB.
Reporting by Agnieszka Flak; Editing by Keith Weir