Ferrari Q1 Profit Rises, Lifts FY Outlook; CEO Amedeo Felisa Retires

(RTTNews) - Ferrari N.V. (RACE) reported that its net profit for the first-quarter of 2016 was 78 million euros, up 13 million euros or 19% percent due to combined effect of strong adjusted EBIT partially offset by higher financial expenses and benefitting from a lower tax rate. The Group revised its 2016 guidance upwards.

Separately, Ferrari announced the retirement of its Chief Executive Officer, Amedeo Felisa, after 26 years of service. Sergio Marchionne will assume those responsibilities while retaining his current role as Chairman of the Company. Mr. Felisa will continue to serve on the Board of Directors of Ferrari with a specific mandate as technical advisor to the Company.

For 2016, the company expects net revenues of about 3 billion euros, adjusted EBITDA of greater than or equal to 800 million euros, Shipments more than 7,900 units including supercars.

Earnings per share for the first-quarter grew to 0.41 euros from 0.34 euros in the prior year, while adjusted earnings per share improved to 0.41 euros from 0.36 euros in the previous year.

Adjusted EBIT for the first-quarter was 121 million euros, up 21% from last year as a result of higher volumes from the newly launched 488 GTB, 488 Spider and the F12tdf as well as a positive margin contribution from our personalization programs. The increase was also supported by lower Selling, general and administrative costs10 of Euro 2 million, mainly due to timing of the 2016 F1 racing season.

Mix was negatively impacted (8 million euros) by higher V8 versus V12 range models, lower sales of LaFerrari partially offset by the increase of FXX K, the first deliveries of the F60 America, a strictly limited edition car (only ten units), which was produced to commemorate the 60th Anniversary of Ferrari in America.

Net revenues for the quarter were 675 million euros, an increase of 54 million euros or 8.8% from the prior year, while it was up 8.4% at constant currencies. Higher net revenues in Cars and spare parts (52 million euros, +12%), due to increased volumes led by new models 488 GTB, 488 Spider and F12tdf, along with a higher contribution from personalization, and Sponsorship, commercial and brand (9 million euros, +8%), mostly due to better championship ranking, were partially offset by a decrease in Engines (7 million euros, -11%), mainly attributable to lower shipments to Maserati despite higher rental revenues from other Formula 1 Teams.

Shipments totaled 1,882 units in the first-quarter 2016, up 15% from previous year. This performance was driven by a 21% increase in sales of our 8 cylinder models (V8), led by the success of the two newly launched models: the 488 GTB and the 488 Spider. Shipments of the 12 cylinder models (V12) were down 6% due to the phase out of the FF, the completion of the lifecycle of the F12berlinetta (now in its 5th year of commercialization) and LaFerrari finishing its limited series run, partially offset by the introduction of the new F12tdf.

Net industrial debt reduced to 782 million euros, primarily due to strong adjusted EBITDA partially offset by capex and negative change in working capital.