Home Car News Ferrari Posts Record Profit in Q1 with $265 million in Earnings

Ferrari Posts Record Profit in Q1 with $265 million in Earnings

Ferrari 812 Superfast at the Geneva Motor Show 2017

Ferrari profit margins are through the roof and it shows in the brand’s first quarter earnings. The supercar manufacturer posted a record profit of $265 million over Q1 in 2017, a 36 percent increase.

The Italian supercar brand benefitted from demand for its most expensive models, including the $2.1 million LaFerrari Aperta and several special editions that were created in honor of the brand’s 70th anniversary.

Things are looking good for Ferrari, with the new 812 Superfast about to be unleashed and lead the company to a possible record year in sales. The new flagship 812 Superfast replaces the Ferrari F12 Berlinetta and produces a massive 789 horsepower from its 6.5-liter naturally-aspirated V12 engine. It is capable of accelerating from 0 to 100 km/h in just 2.9 seconds and reaching a top speed of 340 km/h.

Ferrari thanks its high average profit per car to exclusivity and limited production vehicles. However, considering its a publicly traded company, the company needs to push growth in order to keep investors happy. CEO Sergio Marchionne seeks to safeguard both the brand’s exclusivity with cars such as the LaFerrari Aperta and boosting volume of ‘regular’ production vehicles at the same time. As a result the brand stands to sell as many as 9,000 vehicles by 2019, up from 7,000 previously.

In order to sell that many vehicles Marchionne plans to broaden the brand’s lineup to draw a wider range of customers. Both more hybrid models and less powerful vehicles with V6 engines are on the cards. Aficionados and customers however don’t need to fear a possible demise of the naturally-aspirated V12, as the company recently said it is here to stay. Rightly so, demand for cars with V12 engines rose by 50 percent in the first quarter of this year.

Ferrari shares rose by as much as 4.2 percent hitting a new record share price at €72,45 last week. The stock has surged by 86 percent in the past 12 months, leading to a market valuation of €13.6 billion. With deliveries on track to reach around 8,400 vehicles this year, Marchionne said that the company’s 2017 earnings could exceed €1 billion!

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