Ferrari stock hits all-time low after sales announcement

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
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