Ferrari Raises 2017 Profit Target on Limited-Edition Cars – Bloomberg

Ferrari NV raised its 2017 profit target as rollouts of limited-edition supercars, including the FXX K Evo racing model unveiled last week, help the Italian automaker achieve a long-held goal two years early.

Adjusted earnings before interest, taxes, depreciation and amortization will total about 1 billion euros ($1.63 billion), the Maranello-based manufacturer said Thursday in a statement. That’s 14 percent more than the 2016 figure. Third-quarter adjusted Ebitda jumped more than 13 percent to 266 million euros.

Chief Executive Officer Sergio Marchionne has aimed for 1 billion euros in operating profit since he replaced Luca Cordero Di Montezemolo at the helm of Ferrari in 2014. Reaching it before 2019 opens the way for the 65-years-old CEO to launch his final business plan for the supercar maker before he retires. The new five-year strategy, to be presented in early 2018, is set to include expansion into new segments, including sport utility vehicles, to win more customers with less-extreme models.

Still, Ferrari isn’t abandoning its most loyal aficionados, and will continue bringing out special models such as last year’s LaFerrari Aperta convertible or the FXX K Evo, which was introduced to the public at the annual Finali mondiali racing event in late October.

Shares Fall

Ferrari shares were trading down 1.4 percent at 102.40 euros as of 12:40 p.m. in Milan after falling as much as 4.3 percent following the announcement of the full-year forecast, which about matches the 1.02 billion-euro average of analyst estimates compiled by Bloomberg. The stock has gained 85 percent this year, valuing Ferrari at 19.5 billion euros.

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