A Record Quarter: On The Way To A Great Year
May 4, 2017 by Ferrari North Europe![A Record Quarter: On The Way To A Great Year](images/articleimages/ferrari-2017-quarter-sales1-400.jpg)
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Q1 2017 adjusted EBIT(1) was Euro 177 million, up Euro 56 million (+46%) vs. prior year as a result of higher volume (Euro 17 million), thanks to the 488 family, the GTC4Lusso and the F12tdf together with positive contribution from our personalization programs partially offset by the F12berlinetta phasing-out and the California T at its 4th year of commercialization. Mix was positively impacted (Euro 34 million) by LaFerrari Aperta, strong V12 performance as well as pricing increases, partially offset by LaFerrari that completed its lifecycle in 2016 as well as the non-registered racing car FXX K and the strictly limited edition F60 America, completing their limited series run in 2016. Research and development costs and industrial costs grew (Euro -15 million) mainly due to higher D&A and R&D expenses to support product range and components innovation mainly for hybrid technology as well as F1 developments. SG&A increased (Euro -13 million) primarily because of the recently approved Long-Term Incentive plan, higher costs related to new directly operated stores and costs related to the 70th anniversary celebrations which were kicked off on March 12th, partially offset by the deconsolidation of the European Financial Services business since November 2016. FX, excluding hedges, had a positive impact (Euro 7 million) mainly due to USD and JPY, partially offset by GBP. Other had a positive contribution (Euro 3 million) from Engines to Maserati as well as other supporting activities, partially offset by lower 2016 championship ranking compared to 2015, the termination of the rental agreement with a Formula 1 racing team and the deconsolidation of the European Financial Services business since November 2016. Tax rate reduced to 28.5% in Q1 2017 from 30.9% in Q1 2016, mostly due to the combined effect of the Italian Government's decision to reduce the nominal tax rate to 24% from 27.5% in 2017, additional deductions related to eligible research and development costs and depreciations of fixed assets, in accordance with the Italian tax legislation. As a result of the items described above, adjusted net profit(1) for the Q1 2017 was Euro 124 million, up Euro 46 million (+60%). Industrial free cash flow(1) for the three months ended March 31, 2017 was Euro 76 million driven by strong adjusted EBITDA(1) of Euro 242 million partially offset by capex of Euro 72 million and Euro 53 million of net change in working capital due to inventory increase driven by the projected volume growth in line with our 2017 outlook and lower capex payables vs. Q4 2016. Other included approx. Euro 17 million due to 2016 employees' extra-bonus payments and lack of contribution from advances of LaFerrari Aperta. 2017 tax advance payments will impact future quarters. Net industrial debt(1) at March 31, 2017 was reduced to Euro 578 million from Euro 653 million at December 31, 2016 primarily due to the industrial free cash flow(1) generation. Cash distribution and 2017 tax advance payments will impact future quarters. 2017 Outlook confirmed The Group is expecting the following performance in 2017, assuming FX consistent with current market conditions: •Shipments: & 8,400 including supercars •Net revenues: > Euro 3.3 billion •Adjusted EBITDA: > Euro 950 million •Net industrial debt: & Euro 500 million, including a cash distribution to the holders of common shares and excluding potential share repurchases 812 Superfast On February 16th, 2017 Ferrari released the first images of the 812 Superfast, the latest 12 cylinder berlinetta model that represents the highest performance and most powerful range model Ferrari road car of all time. Unveiled on March 7th, 2017 at the Geneva Motor Show, the 812 Superfast is aimed at clients demanding an uncompromising sports car that will deliver exhilarating driving both on road and track yet also be comfortable enough to allow its owners to enjoy it as an all-round experience. Ferrari and Ray-Ban Strengthen their collaboration On February 23rd, 2017 Ferrari and Luxottica Group announced that they had signed a multi-year licensing contract according to which Luxottica will develop, produce and market a range of eyewear branded Ferrari and Ray-Ban. On the same date, the two companies signed also a multi-year renewal of a sponsorship agreement between Scuderia Ferrari and Luxottica whereby the Ray-Ban brand appears on the Formula 1 car. 70th Anniversary On March 12th, 1947 Enzo Ferrari fired up the 125 S, the first car to bear his name. On the same day 70 years later, Ferrari launched its official celebrations for this milestone anniversary. In 2017 over 60 countries will host events that will allow the marque's customers and enthusiasts to enjoy some unique experiences, developed according to the concept of 'Driven by Emotion'. Formula 1 Scuderia Ferrari has worked diligently to be prepared for the 2017 season, and the initial results are encouraging: five podiums in the first four races, with Sebastian Vettel winning two races so far. Subsequent Events Ferrari Land's opening On April 7th, 2017 Ferrari Land opened its doors to the public. The first theme park in Europe and the second in the world after Ferrari World Abu Dhabi that occupies an area of 70,000 square meters within the PortAventura World resort (Barcelona, Spain). Ferrari Land houses 11 attractions, among which the Red Force, the highest and fastest vertical accelerator in Europe, at 112 meters high and with a top speed of 180 km/h reached in just five seconds. About Ferrari Ferrari is among the world's leading luxury brands focused on the design, engineering, production and sale of the world's most recognizable luxury performance sports cars. Ferrari brand symbolizes exclusivity, innovation, state-of-the-art sporting performance and Italian design. Its history and the image enjoyed by its cars are closely associated with its Formula 1 racing team, Scuderia Ferrari, the most successful team in Formula 1 history. From the inaugural year of Formula 1 in 1950 through the present, Scuderia Ferrari has won 226 Grand Prix races, 16 Constructor World titles and 15 Drivers' World titles. Ferrari designs, engineers and produces its cars in Maranello, Italy, and sells them in over 60 markets worldwide.
posted on conceptcarz.com
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