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Ferrari reported underwhelming earnings in the first quarter after the Italian luxury-car maker’s vehicle deliveries remained flat.
Delivery gains in Europe and the Americas failed to offset a 20 per cent decline in greater China, where tariffs are weighing on the profitability of Ferrari’s made-in-Italy supercars. Adjusted operating earnings were in line with estimates.
The results “may have resulted in a touch of disappointment for those new to the stock,” said Bloomberg Intelligence analyst Mike Dean. Ferrari being sold out for the next two years allows the company to be more specific on guidance, meaning an upgrade “was always unlikely.”
Ferrari shares fell as much as 4.95 per cent in Milan. They’re still up around 41 per cent in the past year.
Automakers are coming under pressure from the broader economic downturn that is starting to weigh even on resilient luxury consumers. Porsche last month warned of a slowdown in China, where buyers have put off purchases as a real estate crisis undermines confidence.
To be sure, Ferrari’s earnings were broadly in line with estimates, and the company confirmed its full-year guidance amid healthy demand for pricey models like the 2 million euros (S$2.9 million) Daytona SP3 and more personalisations.
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While chief executive officer Benedetto Vigna has started a shift toward battery power, Ferrari still is relying on its profitable combustion engine vehicles to protect margins. Adjusted earnings before interest, taxes, depreciation and amortisation climbed 13 per cent in the period, to 605 million euros.
Competition to make the transition is intensifying. China’s BYD in February unveiled a high-performance EV priced from around US$233,000.
The Maranello-based manufacturer is building a factory to make hybrid and electric cars that will be ready next month, with the first fully electric Ferrari expected in late 2025.
Hybrid vehicles accounted for 46 per cent of the carmaker’s shipments in the first quarter. BLOOMBERG
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