Ferrari defies industry odds with increase in first quarter of 2019

Ferrari served up more proof the Italian super-car maker can push through headwinds that have beset much of the automotive industry, delivering a rise in first-quarter profit that beat the highest estimate.

The brand, selling sleek and powerful cars sought after by the mega-rich, has long sought a spot next to other luxury goods makers such as Hermès and Prada. On

Tuesday, it delivered a 14% jump in adjusted earnings earnings before interest, taxes, depreciation and amortisation (ebitda).

Growth in deliveries from the entry-level Portofino model helped offset the end of the sales of the $2.1m LaFerrari Aperta. The shares have risen the most in three months.

“Ferrari’s first-quarter results confirm it’s sailing far away from current automotive industry trends,” IG Markets analyst Vincenzo Longo said. Ferrari “is reaffirming itself as a luxury brand with a clear value added.”

While Ferrari reported a jump in profits and steep rise in shipments, other car makers have struggled with slowing economic growth and record spending on electric-vehicle (EV) technology. On Tuesday, BMW reported a 42% slump in automotive-making profit faced with increasing competition in weakening markets and costly pressures to keep up with tightening emissions regulation.

Ferrari rose as much as 5.7%, the most since January 31, and was up 4.3% at €123.50  at 2.14pm in Milan trading. The shares have gained 42% since the start of the year.

The rise in profit shows CEO Louis Camilleri is getting traction on a target to generate €2bn in adjusted ebitda no later than 2022 for the brand. Camilleri is planning more profit-boosting, limited-edition sports cars to reach this goal, and will unveil a record five new models in the coming months.

This includes the manufacturer’s first industrialised hybrid car due at the end of this month, Camilleri said at the Geneva car show in March.

“Hybridisation is the most important challenge Ferrari has to face in the next period; a crossroads that could also include some risks,” Longo said.

Part of the boost to shipments stemmed from accelerated deliveries to China ahead of new emission regulations, Ferrari said. Shipments to Mainland China, Hong Kong and Taiwan rose 79% to 328 vehicles, while total deliveries stood at 2,610 cars.

• Bloomberg