Ferrari Q2 Profit Drops; Narrows 2020 Guidance

(RTTNews) - Ferrari N.V. (RACE) reported that its second-quarter net profit dropped to 9 million euros from 184 million euros in the previous year, mostly due to the Covid-19 impact on Volumes. Adjusted earnings per share for the quarter were 0.04 euros compared to 0.96 euros in the corresponding prior year period.

Shipments totaled 1,389 units in the second quarter of 2020, down 1,282 units or 48.0% versus prior year, impacted by the disruptions of the Covid-19 pandemic, including production suspension and dealers' closure during the initial part of the quarter.

Net revenues for the second quarter were 571 million euros, down 42.6% at constant currency. Cars and spare parts revenues were 450 million euros, down 41.3% or 42.0% at constant currency from last year, due to the Covid-19 production suspension that led to lower deliveries as well as a lower contribution from personalizations, partially offset by deliveries of the Ferrari Monza SP1 and SP2.

The company narrowed its guidance for the full year 2020. The guidance reflects an updated assessment of the projected impact of the Covid-19 pandemic on the Company's supply chain and the resulting delay in the full production ramp up of the SF90 Stradale.

The company now expects adjusted earnings per share for fiscal year 2020 to be in the range of 2.6 euros - 2.8 euros, compared to the prior outlook of 2.4 euros - 3.1 euros per share.

The company now projects annual net revenues to be more than 3.4 billion euros compared to previous guidance of 3.4 billion euros to 3.6 billion euros.