- Spider version of LaFerrari hybrid to debut at Paris car show
- Supercar maker confirmed 800 million-euro 2016 profit target
Ferrari NV’s second-quarter profit beat expectations as supercar sales in China rose amid plans to plump up margins with more special-edition vehicles.
Adjusted earnings before interest and taxes jumped 26 percent to 156 million euros ($175 million), beating an average estimate of 134.9 million euros from seven analysts surveyed by Bloomberg. Revenue increased 5.9 percent to 811 million euros.
Ferrari, which took on debt in its spinoff from Fiat Chrysler Automobiles NV at the beginning of the year, had faced doubts about whether its money-making potential is as high as Chief Executive Officer Sergio Marchionne promised prior to the listing. Marchionne is seeking to boost earnings by bringing out limited-edition vehicles more frequently, including this summer’s open-top version of the 1 million-euro hybrid LaFerrari supercar, and expanding the brand beyond cars.
“The profit targets for 2016 are looking increasingly conservative,” said Massimo Vecchio, a Milan-based analyst for Mediobanca.
The shares rose 1.7 percent to $46.57 at 10:17 a.m. in New York. Ferrari has risen 11 percent since the beginning of the second quarter, compared with a 7.2 percent decline in the STOXX Europe 600 Automotive & Parts Index, as the company’s advance orders help insulate it from economic concerns, such as the U.K.’s vote to leave the European Union, that have weighed on the rest of the industry.
The company confirmed its full-year forecast of adjusted earnings before interest, taxes, depreciation and amortization totaling at least 800 million euros. Second-quarter profit on that basis amounted to 217 million euros.
Sales in China rose 26 percent as Ferrari shipped 4,096 vehicles in the first half. The company is aiming to sell about 8,000 supercars this year.