You are here: Home » Reuters » News
Business Standard

Ferrari's earnings rise, lack of full-year upgrade hits shares

Reuters  |  MILAN 

(Reuters) - on Monday reported an almost 5 percent increase in third-quarter core earnings, helped strong sales of 8-and 12-models but stuck with its full-year profit forecast, which hit the company's shares.

Ferrari's shares, up 1 percent just before the results were published, were down 1.3 percent by 1205 GMT.

The Italian supercar maker, spun off from parent Fiat Chrysler, has had a run of record earnings, helped by special edition models and a customisations programme.

Investors are looking for reassurance the company can maintain its strong growth achieved under late boss Sergio Marchionne, who more than doubled the value of the group since he took it public in 2015.

The unchanged forecast for 2018 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for at least 1.1 billion euros leaves with "an undemanding fourth quarter (flat year-on-year) to meet the low end of this year's guide", said in a note.

Adjusted EBITDA for July-September period rose to 278 million euros ($316 million) from 266 million, compared with 282 million euros analysts consensus, according to according to I/B/E/S data from

Revenues were roughly flat at 838 million euros, slightly below expectations, while shipments were up 10.6 percent, helped by strong sales of 8-models such as the Portofino and 12-cylinder models such as the 812 Superfast.

The third quarter is the second set of results presented by new boss Louis Camilleri, who took over in July after Marchionne's death.

The sudden change at the top jolted shareholders who had expected Marchionne to remain at the helm until 2021.

But investors welcomed a mid-term plan presented by Camilleri in September, under which he promised 15 new models, including hybrids, a utility vehicle and special editions in a drive to almost double earnings to between 1.8-2.0 billion euros by 2022.

($1 = 0.8795 euros)

(Reporting by Agnieszka Flak. Editing by Jane Merriman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 05 2018. 18:28 IST
RECOMMENDED FOR YOU