Italian luxury carmaker Ferrari has had an amazing first quarter boosted by surging sales of top-of-the-range exotic cars that not everyone can afford, such as the $2.1 million LaFerrari Aperta.
For the first three months of the year, Ferrari saw profit margins surge to 29.5 percent of sales, up from 26.3 percent of sales a year earlier -- a performance comparable to that of the world's most profitable companies, including Apple and Hermes, which boast profit margins of 31.6 percent and about 36.5 percent, respectively. By comparison, other carmakers like Fiat Chrysler and General Motors have profit margins of just 11 percent and 13 percent, respectively. "Those profit margins show how Ferrari fishes in the same pool as the luxury brands. It simply uses its cars as bait," said Massimo Vecchio, an analyst with Mediobanca.
Demand for Ferrari models with V12 engines climbed 50 percent in the first quarter fueled by the popularity of the Aperta convertible, the $300,000 GTC4Lusso and the $380,000 F12tdf, whereas sales of V8 engine cars dropped 3 percent. Revenue was up 22 percent to $898 million, while adjusted earnings before interest, taxes, depreciation and amortization rose to $265.5 million. The company is on track to achieve its annual output target of 9,000 by 2019, while deliveries this year are expected to rise from 8,014 in 2016 to about 8,400 this year.
Photo: © Ferrari