(Bloomberg) – Supercar manufacturers typically operate in the rare sphere of recession, where wealthy customers have enough money to drop $ 300,000 or more on their purchase.
On Friday, Ferrari NV experienced the limits of that behavior, reporting growth in the second quarter far behind the first three months of the year, and sending its stock. Both profits and shipments declined from higher demand at the beginning of the year.
Ferrari fell the most in almost ten months after climbing 70% this year before Friday's setback. Some investors had hoped to gain a raised perspective, which was not realized. It even shows that a supercar manufacturer is not immune to a rapidly deteriorating car market in recent months, with companies from Daimler to BMW to Toyota having reduced their targets as customers have second thoughts about buying.
The company's deliveries rose 8% during the second quarter compared to last year, less than 23% gain during the first three months of the year, Ferrari said. Sequentially, shipments and profits were flat. The decline followed rival Aston Martin Lagonda this week, which reported lower vehicle prices, an ominous development for an elite brand.
CEO Louis Camilleri continued to point to accelerated demand in the coming months.
"Ferrari & # 39; s order book has reached record levels," Camilleri told analysts on a call, with orders speeding to become faster throughout the rest of the year.
The carmaker plans to unveil a record five new models in the coming he said, which is the increase from total shipments of 9,251 cars last year.
Sales return on sales was "a touch" worse than expected, said Andrea Balloni, a Mediobanca analyst "Ferrari's own forecast range of annual operating profit is below market expectations," he said.
While increasing sales of the Portofino model continue to drive volume, this was partially offset by lower deliveries of high-end vehicles such as 488 GTB, Sa Ferrari. Interest and amortization increased to EUR 314 million ($ 349 million), analysts' estimates averaged EUR 315.1 million.
Ferrari's results are still more encouraging than profit warnings and sharp declines in profits across other manufacturers. The industry is facing an economic downturn and tensions in trade against a backdrop of the need for exceptional spending on electric cars.
Demand in China has shrunk 12% through June, as Ferrari deliveries in the world's largest car market jumped more than half.
Ferrari fell 3.8% to € 143.70 at 17.34 in trade with Milan.
CEO Camilleri is pursuing a target of generating operating profit of € 2 billion before any goods by 2022 for the brand with the horse horse logo. To get there, he plans more return-efficient sports cars with limited edition.
In May, Ferrari showcased its plug-in hybrid designed for a full production run, the SF90 Stradale at 1000 horsepower, designed to keep up with tightening emission regulations while still satisfying its power hungry customers.
– With assistance from Karen Lin.
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