Ferrari reports 42% slump in second-quarter revenue

Italian sports car maker Ferrari (NYSE: RACE) on Monday reported second-quarter revenue of €571m (£514, $669m), a 42% drop compared to the same quarter of 2019, thanks to the fallout from the coronavirus pandemic.

Its adjusted EBITDA was €124m in the quarter and it reported €9m in net profit for the second quarter, a 95% drop compared to the same quarter of 2019.

The company’s core results fell pretty much in line with expectations.

The company said its adjusted earnings before interest, tax, depreciation and amortization would come in between €1.075bn and €1.125bn this year.

Ferrari’s shipments were down by 48% in the quarter versus the previous year as a result of COVID-19 disruption. Earnings per share were down over 95% to €0.04, the company said in its statement.

Ferrari, which is controlled by Exor NV, the Agnelli family’s investment company, made its debut on the New York stock exchange in October 2015, listed at $52 a share. Today’s share price is around $182 in New York.

Like all European carmakers, Ferrari had to deal with with the temporary closure of its car production plants for nearly two months this spring, as Italy became one of the worst-hit EU countries.

The carmaker cut its already cut its guidance for the year ahead in May to take the pandemic into account, saying then it expected its 2020 earnings before interest, tax, depreciation and amortisation to be lower that 2019, between €1.05bn and €1.2bn.

However, Ferrari also noted in May that demand was relatively strong despite the crisis, and deliveries in the first quarter of 2020 had risen by around 5%, to 2,728 vehicles in the quarter. The iconic sports-car brand launched five new models last year, and reported sales of 10,000 units.

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