Ferrari cuts full-year guidance after revenues fall in Q2


MILAN — Ferrari has trimmed its sales forecasts for this year after reporting decreasing core earnings, although in line with expectations, in the second quarter due to the coronavirus pandemic.

Ferrari said Monday that its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) would come in between 1.075 billion euros and 1.125 billion euros ($1.26 billion and $1.32 billion) this year.

In May, the supercar maker cut its earnings guidance to an adjusted EBITDA of 1.05 billion euros to 1.2 billion euros. It also announced a bond issue worth 650 million euros to increase liquidity.

Net revenue in the second quarter was 571 million euros, a decrease of 42 percent. Adjusted EBITDA for the quarter was 124 million euros, with a margin of 22 percent, a decline of 1,010 basis points from 2019, when margin was 32 percent. Industrial cash flow was negative 158 million euros.

For the first half of 2020, net revenue was 1.5 billion euros, a decrease of 22 percent. Adjusted first half earnings were 441 million euros, a 29 percent decline, for a 29 percent margin, a decline of 310 basis points from the same period in 2019, when Ferrari had an EBITDA margin of 33 percent. 

Ferrari said it shipped 4,127 vehicles in the first half of this year, a decline of 22 percent over 2019. Second-quarter shipments fell by 50 percent to 1,389 “as a result of both production and delivery suspensions.”

Ferrari executives said in May that they expected global deliveries to fall by 4 percent to 15 percent from 2019 sales of 10,131 vehicles because of the coronavirus crisis.

On Monday, CFO Antonio Picca Piccon said in a conference call with analysts that deliveries would fall “by nearly 9 percent” this year. He added that Ferrari would make up approximately 500 units of the 2,000 units lost during the seven-week coronavirus plant shutdown.

Ferrari had considered shortening the August holiday but decided not to, said CEO Louis Camilleri, as doing so could have hampered maintenance activities and also because “everyone needs a break” after the very difficult first half of the year. The 500 additional cars will come from working some Saturdays during the rest of 2020, Camilleri said.

Camilleri said Ferrari’s order book is up significantly from the same period of 2019 and that there had been fewer order cancellations than expected.

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