Ferrari Q4 earnings rise 38%, expectations for 2017 rise

MILAN -- Italian luxury carmaker Ferrari reported a 38 percent rise in fourth-quarter adjusted core earnings and gave a strong guidance for 2017.Ferrari, which was spun off from Fiat Chrysler Automobiles at the start of last year, said in a statement Thursday that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in October-December rose to 251 million euros ($271 million).Sales were up 12 percent to 836 million euros, above expectations of 815 million euros, helped by sales of its 12-cylinder models such as the GTC4Lusso and the newly launched LaFerrari Aperta.For 2017, Ferrari forecast an adjusted EBITDA of more than 950 million euros, sales above 3.3 billion euros and net debt falling to around 500 million euros from 653 million euros at the end of last year.Analysts had forecast a 2017 adjusted EBITDA of 921 million euros and sales of 3.29 billion euros.Ferrari shares raced to a new high on Thursday on the news. Its Milan-listed shares earlier Thursday rose more than 4 percent to 60.75 euros, the highest since their debut in January 2016. In New York, the shares rose 4 percent to close at $64.65.Spun off from Fiat Chrysler, Ferrari has been under pressure to show it can increase profits without the backing of a large parent and lift sales without sacrificing the brand's exclusive status.Ferrari will celebrate its 70th anniversary this year with a series of tailor-made cars, all inspired by iconic models from its past. Overall, the group plans to ship around 8,400 vehicles in 2017, getting closer to the 9,000 goal it has set for 2019. Beyond special editions, Ferrari has been trying to expand its appeal with cars that have characteristics other than the technological prowess of its recent 8-cylinder and 12-cylinder models. It bills the GTC4Lusso T, a four-seater with a smaller V8 turbo engine, as "designed to be driven every day.""Investors will assume that Ferrari will have left some upside to their 2017 guidance and attempt to follow a similar pattern to 2016 of 'Beat and Raise,'" said George Galliers, an analyst at Evercore ISI.While at the time of the stock offering CEO Chief Executive Sergio Marchionne promised to expand the luxury brand beyond cars, he recently said Ferrari's focus would be on vehicles first.He added that from 2019 all vehicles sold would have some hybrid elements, potentially opening the way for shipments to grow substantially in future. At the moment, Ferrari is exempt from certain fuel economy and emissions requirements provided it sells fewer than 10,000 vehicles a year.

Ferrari Q4 earnings rise 38%, expectations for 2017 rise

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