Ferrari sees strong demand stretching into the distance
Published On :
Ferrari sees strong demand stretching into the distance
By Giulio Piovaccari and Keith Weir
MILAN (Reuters) -Ferrari’s order books are bulging all the way into 2025 when it plans to launch its first fully electric vehicle, the luxury sports car maker said on Thursday, as it raised its earnings forecast for this year.
Core profit in the third quarter beat estimates, driven by pricing power and the continuing appeal of personalised additions to its cars.
“The order book remains at highest levels reflecting strong demand across all geographies, covering the entire 2025,” Chief Executive Benedetto Vigna said.
Vigna told analysts all Ferrari models bar one were effectively sold out for the coming months.
His tone was markedly more bullish than German rival Porsche, which warned last week that the luxury sector was feeling the effects of consumer caution as interest rates rise.
Vigna confirmed that Ferrari, famous for its high performance petrol cars, was on track to launch its first fully electric vehicle in the last quarter of 2025.
The vehicle is currently in the prototype phase and the new “ebuilding” where it will be constructed at the company’s home in Maranello, northern Italy, is due to open next June.
Ferrari shares were up 5.2% at 1530 GMT and have gained almost 50% so far this year, according to LSEG data.
“With a new production facility, potential hypercar, and BEV (electric) model all expected to arrive within the next 24 months, investors see Ferrari as moving into another exciting phase of the company’s history,” Bernstein analysts said in a note.
HYBRIDS ON THE RISE
Deliveries in the quarter were driven by the 296 and the SF90 families, while the 812 Competizione A and the Purosangue four-seater were in ramp up phase. The F8 Spider was approaching the end of its lifecycle.
The product portfolio in the quarter included nine internal combustion engine models and four hybrid engine models. Hybrid deliveries reached 51.0% of total shipments in the quarter.
The company now expects its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to reach at least 2.25 billion euros ($2.39 billion) this year, versus a previous – and already improved – forecast of 2.19-2.22 billion euros.
In the July-September period, Ferrari’s adjusted EBITDA climbed 37% to 595 million euros, topping analyst expectations of 560 million euros, according to a Reuters poll.
($1 = 0.9406 euros)
(Reporting by Giulio Piovaccari in Milan and Keith Weir in London Additional reporting by Nick Carey in London Editing by David Evans and Mark Potter)
Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.
-
-
NEWS4 days ago
Asia stocks rise after Wall Street records; dollar rebounds
-
-
-
NEWS3 days ago
Oil steady, traders hopeful on China demand but worried about Fed
-
-
-
NEWS3 days ago
World shares mixed, dollar advances amid improved U.S. manufacturing, French political drama
-
-
-
NEWS3 days ago
Tavares clashed with Stellantis board over revival plan, sources say
-