Ferrari Profits Up

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Ferrari Profits Up

Ferrari Profits Up

Ferrari is witnessing high demand and its orders are now stretching into 2023. The company delivered a record number of cars in 2021. CEO Benedetto Vigna said despite the pandemic the company is seeing a surge in luxury vehicles demand.

The company is predicting a jump in its core earnings in 2022 following record results last year. The order book is the strongest in its history, said Vigna while presenting the annual results on Wednesday.

Vigna took charge of Ferrari in September 2021 and is tasked to lead the company into a new era of quieter, cleaner as well as interconnected mobility.

The shares have reversed the early losses with a rise of about 1.4 percent. The shipments of cars have jumped up 22 percent to 11,155 units in 2021 in comparison to the pandemic year of 2020 and 10 percent from 2019.

Strong sales of 8-cylinder models, the F8 family, 430,000-euro hybrid SF90 Stradale and the 205,000-euro Roma grand tourer have contributed to the double-digit growth of the company. However, the shipments of 12-cylinder models fell as it was more polluting even though being more powerful.

The company is planning to launch two new models in 2022 and this includes its first sport utility vehicle and the much-awaited Purosangue. A total of fifteen new vehicles were announced in 2018 and it is working on the launching of these.

Ferrari has earlier announced to be launching its first all-electric car by 2025 and in the meantime three hybrid models have been rolled out.

Lately, the demand for luxury cars has increased across the world. Rolls-Royce witnessed a sales growth of 49 percent in 2021. Porsche delivered over 300,000 vehicles in the same year.

The Ferrari adjusted forecast earnings for the year is 1.65-1.70 billion euros without deducting tax, depreciation, interest and amortization. The figure is up from 1.53 billion euros of last year.

The result in 2021 was in line with its forecast of 1.52 billion euros and it was a jump of 34 percent from the previous year. Ferrari paid all the employees a record bonus of up to 12,000 euros.

Vigna is learned to be unveiling the future strategy of the company on June 16. He is a former top executive at STMicroelectronics and a tech industry veteran. He said technology partnerships would be a priority for the company as it is moving towards an electrification strategy amid maintaining manufacturing discipline.

He added that the company would be targeting a capital expenditure of about 800 million euros in 2022 and the peak of Ferrari may continue further.

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