The Italian supercar maker on Tuesday shifted to an adjusted core prognosis range of 1.8-2.0 billion euros ($ 2.1-2.3 billion) by 2022, instead of the doubling to 2 billion promised by the late Ferrari boss Sergio Marchionne.
Investors looking for reassurance that the company can maintain a recent strong growth took their predicted changes and Ferrari shares closed 3.9%, recovering from previous losses.
"This is an ambitious plan, but an executable plan based on a concrete, detailed framework," said Ferrari CEO Louis Camilleri, headquartered in Maranello.
Ferrari shares were down more than 8 percent in August, when Camilleri described Marchionne's goals as & # 39; ambitious & # 39; His sudden death in July shocked the shareholders who expected him to stay until 2021. Among the car industry, the value of Ferrari had more than doubled since he made it public in 2015.
Camilleri and his team outlined a plan to show how a brand known for its racing family and roaring combustion engines shifts to making a utility vehicle and driving hybrid cars and margins to more than 38 percent without compromising. to exclusivity.
The company increased its dividend payout ratio and announced a share purchase plan of 1.5 billion euros, while its marketing manager promised a "significant increase in average sales price".
NEXT THE MAP
With margins at 30 percent now, strong pricing power and an enviable customer waiting list, Camilleri inherits a company that shoots all cylinders and is not expected to stray far from the script of its predecessor.
Ferrari's new Monza SP1 can be seen in this photo released by Ferrari press office at a meeting in Maranello, Italy, September 18, 2018. Photo taken on July 26, 2018. Ferrari press office / Brochure Template via REUTERS
Marchionne had orchestrated Ferrari's spin-off from parent Fiat Chrysler, positioned as a luxury brand rather than a car manufacturer, and managed to do what few people thought possible: sail through a self-imposed production cap of 7,000 cars & # 39; s per year without compromising on price-setting or are exclusive of profession.
Ferrari has achieved record profit for years, helped by special editions and an adjustment program.
But it can be difficult to maintain the high valuation of the company as the emission rules become stricter, capital expenditures increase and the divergent interests of investors, race fans, owners and collectors become more difficult to balance.
A total of 3.6 billion euros will be spent to develop new vehicles and to switch to hybrids, in order to comply with the gradually stricter emission regulations.
The company said that by the end of the plan, hybrid vehicles would account for about 60 percent of the product mix, while a smaller six-cylinder engine would be added to its range of internal combustion engines.
At the time of the IPO Marchionne had promised to extend Ferrari to other luxury categories than cars, but the plan was put on ice to first focus on vehicles. Camilleri said that expansion was still a "work in progress".
Ferrari refused to give a forecast for shipments, except that he said that more than half of those sports cars would be.
This year's deliveries are forecasted for more than 9,000 vehicles.
During the event, Ferrari unveiled a pair of sports cars with open top and limited edition, as part of a new segment called "Icona", inspired by Ferrari's past, but with the latest technologies to reward its most loyal customers.
Ferrari's new Monza SP2 can be seen in this photo released by Ferrari press office during a meeting in Maranello, Italy, September 18, 2018. Photo taken on September 11, 2018. Ferrari press office / Brochure Template via REUTERS
It also promised to expand its range of GT vehicles, which focuses more on style and driving experience than on extreme performance to attract new customers.
Ferrari excluded a self-steering model, but added that the much-discussed utility vehicle would be near the end of the plan, two years later than initially predicted.
The vehicle, called "Purosangue" (thoroughbred), could potentially lead to substantial sales growth, analysts said, while Ferrari expects the car to also help to lure the super-rich in China.
Camilleri wanted to eliminate the concerns that the vehicle could dilute the exclusive status of Ferrari.
"As a die-hard Ferrarista, I was a little skeptical when the concept was first expressed on the board," said the well-known Ferrari collector.
"Now that I have seen the beautiful design concept, the extraordinary features …, I am an enormously enthusiastic supporter." ($ 1 = 0.8548 euro)