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Ferrari vows 'even stronger' 2023 with more new models

Published 02/02/2023, 06:33 AM
Updated 02/02/2023, 12:07 PM
© Reuters. FILE PHOTO: The company's logo is seen on a wheel hub of a Ferrari Roma sports car during a media preview at the Auto Zurich Car Show in Zurich, Switzerland November 3, 2021. REUTERS/Arnd Wiegmann
RACE
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By Giulio Piovaccari

MILAN (Reuters) - A procession of new models will continue to boost earnings at Ferrari (NYSE:RACE), the Italian luxury sports car maker said on Thursday, as it promised "even stronger" results this year after a 16% jump in 2022 core earnings.

Deliveries jumped almost a fifth to 13,221 cars last year, led by the established Ferrari Portofino M and the SF90 family models, as well as the 296 GTB and 812 Competizione. China saw the strongest growth, with shipments jumping 73% to 1,552 cars.

Ferrari said it would launch four models this year, adding to the new 390,000 euro ($428,000) Purosangue four-seater which will start being delivered to customers in the second quarter.

"Our order book is robust, it covers all this year and good part of the next one," Chief Executive Benedetto Vigna said.

"Purosangue ordering has been extraordinarily high; well beyond expectations."

Third Bridge analyst Orwa Mohamad said the new Purosangue would increase Ferrari's customer base in 2023.

"Ferrari reported a strong performance with attractive profit margins and one of the most significant volume increases over the last 10-12 years," he said.

ROAD TO ELECTRIC

The carmaker's Milan-listed shares rose as much as 7.4% after its results were published and closed up 7.3%.

According to a regulatory filing, BlackRock (NYSE:BLK), the world's largest asset manager, now has a 5.5% stake in Ferrari, which is controlled by Exor (OTC:EXXRF), the holding company of Italy's Agnelli family.

Vigna said the company, known for its roaring petrol engines, was "fully on track" with its electrification plans, which envisage the launch of its first fully electric car in 2025.

"After June last year we've seen a progression of results, both on the product side and on the development of our manufacturing facility," he said.

Ferrari's fully electric cars will be fitted with an acoustic system to help them deliver the brand's distinctive noise, according to a patent the company filed last month in the United States seen by Reuters.

The company, which unveiled its business plan to 2026 in June, forecast adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 2.13-2.18 billion euros in 2023, up from last year's 1.773 billion euros.

RBC analyst Tom Narayan said he had feared a conservative stance on 2023 due to currency headwinds and raw material prices. "But today's guidance raise suggests management has good confidence in 2023 mix and margin," he said.

Fourth-quarter adjusted EBITDA rose 18% to 469 million euros, beating analysts' expectations.

"These figures provide the base for an even stronger 2023, fuelled by persistently high demand for our products worldwide," Vigna said.

© Reuters. FILE PHOTO: The company's logo is seen on a wheel hub of a Ferrari Roma sports car during a media preview at the Auto Zurich Car Show in Zurich, Switzerland November 3, 2021. REUTERS/Arnd Wiegmann

The company also announced on Thursday it would pay all its employees a performance bonus of up to 13,500 euros each, up from 12,000 euros last year.

($1 = 0.9106 euros)

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