In perfect timing for the upcoming 70th Birthday celebrations, Ferrari has announced that 2016 was a record profit year!
The Italian luxury sports car manufacturer mentioned that this was largely due to sales of the Ferrari 488 GTB.
Profits for 2016 were `better than expected net profits’ with a return of 38 percent to 400 million euros ($430 million), representing a rise of 110 million on 2015.
This also exceeded industry analysts’ forecasts of closer to 390 million, with 8.8 percent sales increase to reach 3.1 billion euros.
The news was received well by stock traders as Ferrari’s share price rose 3.73 percent to 59.75 euros, representing an all-time closing high, prompting their jubilant CEO Sergio Marchionne to label it as a `good year’ as he projected production targets of 10,000 units for 2020-2025.
“We are satisfied with the progress we have made,” said Marchionne, saluting a focus on keeping costs under control to bolster operating margin.
“This achievement was led by the success of both the 488 GTB and the 488 Spider,” the company said in a statement.
Ferrari is targeting sales topping 3.3 billion euros in 2017 with debt levels factored down to 500 million euros, according to the “prudent” hopes of Marchionne, who rejected chasing “unrealistic targets.”
While seeking to broaden the base of the producer’s clientele, Marchionne said he was not targeting a “huge tribe, but a manageable tribe,” of customers to ensure that Ferrari could surpass 10,000 annual sales “without disrupting the DNA of the brand.”
Of course Farrari was founded by Enzo Ferrari in 1947, and hence will celebrate its 70th anniversary this year, 2017.
Regarding Formula One racing, Marchionne was positive saying that they had begun “exploring the opportunity of acquiring a participation” and had held talks on the subject with new owner Liberty Media.
US-based Liberty Media recently completed its takeover of motorsport’s most prestigious brand in a deal valued at about $8 billion.
This is the first announcement for Farrari as a stand-alone company after it split from former parent company Fiat Chrysler. It comes as Ferrari posted shipments of 8,000 vehicles representing a rise of 4.6 percent beyond the 7,700 figure for 2015.