Ferrari profits rise in second quarter as sales grow

August 01, 2018 - 6:25 am

MILAN (AP) — Sports carmaker Ferrari on Wednesday confirmed its 2018 earnings forecasts after posting an 18-percent rise in second-quarter profits and a rise in deliveries.

The sports carmaker also said it would go ahead with a new business plan presentation next month, led by its new CEO Louis Camilleri. Camilleri, 63, was appointed June 21 to replace a seriously ill Sergio Marchionne, who died days later after complications from surgery.

Ferrari said net income for the three months through June was 160 million euros ($187 million), up from 136 million euros in the same period a year earlier. Sales of 12-cylinder models boosted volumes by 5 percent to 2,436 vehicles. Europe and North America led with 7-percent increases, while sales growth in greater China more than offset a decrease in the rest of Asia.

The company confirmed its 2018 outlook for shipments of more than 9,000 units with operating profit above 1.1 billion euros on more than 3.4 billion euros in revenues.

Shares in the company were trading down 0.5 percent at 113.20 euros.

The new business plan is expected to outline Ferrari's decision to start making SUVs. Marchionne also had discussed repositioning the brand as a luxury goods company beyond cars.

The company expressed regret for Marchionne's death and said it "remains committed to pursuing the values he embodied and achieving his vision with unabated determination, ambition and passion, in line with Enzo Ferrari's legacy."

Camilleri, born in Egypt to a Maltese family, has been on the Ferrari board since 2015 and is chairman at Ferrari sponsor Philip Morris International. He was Philip Morris chairman and CEO from 2008 to 2013.

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