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Old 20th February 2014, 10:10   #1
GTO
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Default Ferrari's Financial Results - 2013

Some interesting data from Ferrari's 2013 results that just came in:

After 2012, its best ever year, Ferrari claims it decided to actually reduce the number of cars sold to maintain exclusivity and increase the value of their cars. Whether the number dropped due to weakening of demand, or Ferrari's own policy, is anybody's guess.

While the number of cars delivered dropped to 6,922 (-5.4%) in 2013, revenues rose by 5% to 2.3 billion Euro.

USA = 2,035 deliveries
China = 700
UK = 677
Germany = 652
Middle East and Africa = 599
Japan = 380

Italy has become a marginal market for Ferrari with only 205 orders.

End-of-year trading profits reached 363.5 million Euro (+8.3 per cent), while net profits stand at 246 million Euro (+5.4 per cent).

Brand-related businesses (retail, licensing and E-commerce) will be managed by a separate company, 100 per cent owned by Ferrari, from this year. Operating profits from this business were 54 million Euro.

Ferrari's Research & Development budget was 337 million Euro (up from 324 million in 2012), almost 15% of revenues.

The company has about 1.36 billion Euro in cash on hand.
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Old 20th February 2014, 10:27   #2
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Default Re: Ferrari's Financial Results - 2013

Certainly strikes me as a case of Ferrari trying to explain/justify a drop in the number of car deliveries before anyone slips the question in. Sounds a bit like a kid not being picked to play for someone's team: "oh, but I never wanted to play for them anyways. Hmmph".

They are achieving higher margins even with the lesser number of sales, so it's clearly a strategy that's working for them. From a brand point of view too, makes sense to maintain the exclusivity of access to a Ferrari.

On a separate note, China is its second largest market after the US! That slice of the pie will only keep on growing for Ferrari as the number of millionaires/billionaires increase in China.
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Old 20th February 2014, 10:31   #3
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Default Re: Ferrari's Financial Results - 2013

Whats the difference between EOY trading profits and net profits?

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Originally Posted by GTO View Post
• Ferrari's Research & Development budget was 337 million Euro (up from 324 million in 2012), almost 15% of revenues.
Good to see that the R&D budget is more than net profit each year. Any idea whether it includes the spend for the F1 team? Or is it coming from parent Fiat?

Last edited by deetjohn : 20th February 2014 at 10:32. Reason: adding Q.
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Old 20th February 2014, 11:38   #4
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Default Re: Ferrari's Financial Results - 2013

I'd tend to agree with their producing fewer cars to maintain exclusivity statement. This segment of super luxury / super cars is rarely affected by any recession / slowdown and there are definitely more than 7000 people around the world looking to buy a Ferrari.
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Old 21st February 2014, 14:39   #5
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Default Re: Ferrari's Financial Results - 2013

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Originally Posted by deetjohn View Post
Whats the difference between EOY trading profits and net profits?
Trading profit is basically gross profit. Net profit is the more important number here.

Quote:
Any idea whether it includes the spend for the F1 team?
Maybe just a part? AFAIK, the F1 team's annual budget is 250 - 350 million US$ (the sponsorship deals should take care of a decent percentage of this).
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