Ferrari trims full-year outlook after earnings skid on Covid
Temporary suspension of Formula One season hit commercial and sponsorship revenues
Ferrari’s Sebastian Vettel leads Pierre Gasly at the F1 British Grand Prix at Silverstone at the weekend. Ferrari said its earnings had been hit by the temporary suspension of the season. Photograph: Getty
Luxury carmaker Ferrari trimmed its full-year earnings forecast on Monday after second-quarter income plunged due to supply chain and production disruptions as a consequence of the coronavirus pandemic.
The company known as the Prancing Horse said production suspensions and “significantly” lower sponsorship and commercial and brand revenues due to the pandemic resulted in a 60 per cent drop in adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) to €124 million euro in the second quarter.
As a result, the company said it now expected full-year Ebitda would come in at between €1.075 billion and €1.125 billion. That compares with the already-cut guidance it provided in May for an adjusted Ebitda between €1.05 billion and €1.2 billion.
“This 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,” said Ferrari, referring to its hybrid electric model.
Ferrari said it was hit by the temporary suspension of the Formula One season which resulted in a reduced number of races as well as reduced in-store traffic and museum visitors.
The carmaker now expects its revenues to top €3.4 billion this year, versus a previous guidance of between €3.4 billion and €3.6 billion. – Reuters