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Ferrari raises forecasts after record third-quarter earnings

Associated Press Associated Press 7/11/2016 By COLLEEN BARRY, AP Business Writer

MILAN — Italian luxury sports car maker Ferrari NV revised its earnings guidance upward on Monday after reporting a record third-quarter profit of 113 million euros ($126 million), up 20 percent over last year.

The company, based in the northern Italian city of Maranello, raised its estimate for full-year earnings before interest, taxes and amortization to above 850 million euros, from above 800 million euros previously. It lowered its estimated debt at the end of the year to below 700 million euros.

CEO Sergio Marchionne told analysts that there would be a "fundamental shift" in Ferrari's powertrains toward hybrids beginning in 2019.

"Most if not all vehicles will include by definition hybridization," Marchionne said.

The limited edition LaFerrari, which debuted in 2013, features a hybrid combustion-electric engine derived from the sports' car maker's Formula 1 pedigree.

Revenue in the quarter was up 8 percent to 783 million euros ($873.7 million), helped by the success of 12-cylinder models, notably the F12tdf, the four-seat GTC4Lusso and the newly launched LaFerrari Aperta convertible. The company also reported higher engine revenues on Maserati sales and rentals to other Formula 1 teams as well as an increase in sponsorship and brand earnings, attributed to Ferrari's improved showing on the Formula 1 circuit.

Ferrari reported shipments of 1,978 vehicles, up 29 units from the previous year.

By region, sales rose in Europe, the Americas and greater China, while decreasing in the rest of Asia due to logistical delays caused by a shipment carrier.

The group confirmed its forecast of shipments for the year at around 8,000 units, with revenues above 3 billion euros.

Shares rose 5 percent in Milan on Monday, to 48.53 euros. The stock has risen 11 percent since the beginning of the year, when it spun off from mass-market parent Fiat Chrysler.

In New York trading, Ferrari shares have increased slightly more than 6 percent since the beginning of the year. The stock has dropped slightly more than 1 percent in the last 12 months.

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