Ferrari races ahead with 10pc boost in profits
Published 02/10/2010 | 05:00
Ferrari, the maker of the $228,000 California supercar, will increase profit by more than 10pc this year, helped by a surge in demand in emerging markets, said chairman Luca Cordero di Montezemolo.
"We will close the year better than last year," with double-digit growth rate in earnings, Mr Montezemolo said in an interview at the Paris Motor Show yesterday. Fiat's most profitable brand may end 2010 with record earnings, he said.
The luxury carmaker plans to start selling in India starting next year, the executive said. Ferrari's earnings before interest, taxes and one-time gains or losses, or trading profit, rose by 10pc to €77m in the second quarter as revenue increased 8.7pc. China sales jumped 20pc in the first half.
Fiat CEO Sergio Marchionne unveiled a five-year plan for Ferrari and Maserati on April 21, along with new targets for all the group brands, calling for the two luxury carmakers to almost double revenue to about €4bn by 2014 by adding products and widening model ranges.
Ferrari isn't planning an initial public offering, Mr Montezemolo said.
'Corriere della Sera' reported last weekend that Fiat may sell shares of Ferrari in an IPO to help fund the purchase of more stock in Chrysler.
Turin, Italy-based Fiat acquired a 20pc holding in Chrysler in June last year. It plans to increase the stake to 25pc as soon as December.
Ferrari's trading profit for 2009 fell 30pc to €238m. Fiat has a target of €210m of trading profit for Maserati and Ferrari this year, according to a July 21 presentation. (Bloomberg)