Italian sportscar-maker Ferrari reported a more-than-seven-percent rise in profits from the second quarter of this year, with €290 million (roughly $340 million US) in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), compared with €270 million ($315 million) a year earlier. Margins climbed as high as 31.9 percent, up from 29.4, although sales revenue was below expectations at €906 million rather than the €921 million projected.
Yet posting a 7-percent rise in profits wasn’t enough to bolster Ferrari’s share value, which as of this writing has slid by nearly 12 percent to less than $117 per share since markets opened this morning. The reason for the decline, according to Fox Business, is likely CEO Louis Camilleri’s comment earlier today that Ferrari’s annual revenue target set by former CEO Sergio Marchionne was “aspirational.”
The comment came as Camilleri conducted his first earnings call with analysts as chief executive of the Italian automaker. Prior to his forced resignation in the wake of a health emergency, Marchionne had set a goal for Ferrari to reach €2 billion ($2.33 billion US) in annual revenue by 2022.
“Clearly, there were plans behind them,” Camilleri told analysts. “In the [September] Capital Markets Day we will cross the T’s and dot the I’s, and tell you how we think we will get there. But we will have to disclose potential risk to that and also significant opportunities that we see going forward.”
The new CEO later said that he didn’t mean to suggest Marchionne’s targets for Ferrari were too ambitious to be achieved.
Louis Camilleri will conduct his first Capital Markets Day presentation as the leader of Ferrari this September, when he is expected to divulge more information about the marque’s future electrification strategy and its first entrant in the utility vehicle market. A statement from the Italian company said that it remains committed to “achieving [Sergio Marchionne’s] vision with unabated determination, ambition and passion, in line with Enzo Ferrari’s legacy.”