Ferrari gets more bucks for the bang

FERRARI, Italy’s biggest manufacturer of high-end sports and grand touring cars, sailed through 2008 with a 27 per cent rise in profits to a record €339 million ($A662 million).

The result contrasts sharply with those from the mass producers, particularly the US companies, which have been reporting multi-billion-dollar losses and are dependent on Government loans for their survival.

The Ferrari profit was remarkable not only because it was struck in a year blighted by the onset of the global financial crisis.

It was also notable because sales of Ferrari cars edged up only 2 per cent to 6587 units for the 12 months to December.

That means the average profit jumped from €41,288 to an €51,465 on each car sold.

Releasing the figures, Ferrari chairman Luca di Montezemolo said: “Ending 2008 with results unprecedented in the entire history of the company is the best endorsement we could have of our strategy of exclusivity, innovation and focus on people.

“The results beautifully cap a truly exceptional year that saw us once again at the top in Formula One, winning our 16th constructor’s title, our eighth in the last 10 years.”

The strong profit growth did not just come from the modest increase in car sales, however. But profit margins improved quickly as the profit growth of 27 per cent was almost double the 15 per cent growth in revenues to €1.92 billion.

Although Ferrari did not give specific figures, strong growth was achieved in some of the new business areas being developed.

Income from licensing activities was up 35 per cent, while revenue from the new network of 15 Ferrari stores around the world was up 16 per cent. Sales over the Internet grew 65 per cent, Mr Montezemolo said.

He said the Scuderia version of the 430 made a strong contribution to the revenue growth, as did the two 12-cylinder models. Both the 612 Scaglietti four-seat grand tourer and the two-seat 599 GTB Fiorano benefitted from the One to One Personalisation program, which encourages buyers to add options and specify unique colours and trim.

The California was released after the end of the financial year but should make a significant contribution to sales volumes and revenues in the current year. The company has built a new assembly hall at its Maranello site to produce the V8-engined California, which has a folding hard roof.

The sales growth in 2008 owed a lot to demand from Asian markets.

While global sales rose by 112 units, Japan and China together were responsible for 89 of those while an extra 39 cars went to the Middle East and South Africa.

Sales in Eastern Europe were up 23 per cent, but no numbers were given.

Sales in North America, Ferrari’s biggest market, were “in line” with 2007 at around 1700 cars, while sales in the company’s other big market, Western Europe, were also “in line” with 2007.

The chairman was proud of the enhanced range of services being offered to assembly workers at Maranello. Prime among these were mortgage loans of up to 100 per cent of the property’s value for first and second homes and renovations.

In addition, there were banking facilities “with very attractive conditions” and discounts on school books for trainees and school-aged children of workers.

“There is also a preventative health plan featuring specialist visits, physicals for all employees and their children and free gym use.”

Mr Montezemolo was careful not to make any predictions about trading in 2009.

“The economic climate in 2009 still remains very uncertain as the crisis takes its toll across the globe and it is hard to say how the situation will develop from here,” he said.

“That means, of course, that Ferrari will have to lavish even more attention on every single detail and continue to innovate whilst preserving the exclusivity of our products with respect to market demands.”

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