[Auto/Moto] Ferrari posts 13% rise in quarterly earnings amid flat deliveries

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Ferrari reported underwhelming earnings in the first quarter after the automaker’s vehicle deliveries remained flat. Delivery gains in Europe and the Americas failed to offset a 20 percent decline in greater China, where tariffs are weighing on the profitability of Ferrari’s supercars. Adjusted earnings before interest, taxes, depreciation and amortization climbed 13 percent in the period, to €605 million ($652 million), 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.”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. 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 ($2.2 million) Daytona SP3 and more personalization. While CEO Benedetto Vigna has started a shift toward battery power, Ferrari still is relying on its profitable combustion engine vehicles to protect margins. Competition to make the transition is intensifying. China’s BYD in February unveiled a high-performance EV priced from around $233,000. The Maranello-based manufacturer is building a factory to make plug-in hybrid and electric cars that will be ready next month, with the first full-electric Ferrari expected in late 2025. Plug-in hybrid vehicles accounted for 46 percent of the automaker’s shipments in the first quarter.

https://europe.autonews.com/automakers/ferrari-q1-earnings-rise-13-china-drags-down-deliveries