Ferrari stock hits all-time low after sales announcement

Article by Christian A., on February 5, 2016

According to Ferrari, its sales growth is expected to tumble during its first year of independence from Fiat Chrysler Automobiles (FCA). The company’s guidance led the stock hit the lowest level since its initial public offering (IPO) last October 21.

The car maker said that about 7,900 cars are expected to be shipped this year, up by three percent from last year. In 2015, shipments jumped six percent despite the 22 percent shipment decline in China due to the pressing market turmoil in the country.

A few weeks ago, Ferrari CEO Sergio Marchionne expressed his belief that the company can achieve its target output of 9,000 cars by 2019.

Furthermore, he believes that things will turn out well for Ferrari as long as it stands by its philosophy of building fewer models than the demand. During a conference call, Marchionne said that Ferrari has a “strong backlog of orders” in its aim to preserve the exclusivity of its vehicles.

Moreover, he stated that he doesn’t see the Chinese economy recouping this year. Marchionne also added that Ferrari will not make efforts to uplift demand with an SUV. The stock dropped 12 percent, closing the session at $34.98. The company’s spinoff from FCA, which included a listing in Milan, was fulfilled earlier this year.

IG Group analyst Vincenzo Longo claimed that the sluggish growth in China led to the company’s decision for its profit target this year to be “not-too-aggressive.” He explained, “Last year’s results showed some weakness, and the China issue is here to stay.”

Accordingly, Ferrari’s adjusted earnings excluding interest and taxes are seen at over €770 million for the year. This growth is slower than last year, during which the company’s profits surge nearly eight percent to €748 million. In the fourth quarter, it declined 6.20 percent. On the other hand, Ferrari’s net industrial debt during the last quarter amounted to €1.94 billion.

Topics: ferrari, sales

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries