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Ferrari posts record profits on restricted volume

Most automakers are after one thing and one thing only: selling more cars. Because, after all, selling more cars means making more money. Right? Well that's usually the case, but Ferrari has taken a different approach. Rather than try and sell more cars, Ferrari intentionally sold fewer models in 2013, yet it made more money.
The move was implemented after 2012 emerged as the strongest year in the company's history. Instead of pushing to sell even more cars, it opted to maintain a level of exclusivity by selling fewer - 5.4 percent fewer than the year before, to be specific - thereby ensuring that those it did sell were worth more. As a result, in 2013, Ferrari logged record turnover, profits and finances: on 2.3-billion euros of revenue (up 5 percent from the previous year), Ferrari recorded 363.5 million euros in profit last year - that's roughly $500M USD.
Before you go jumping to conclusions, though, bear a few factors in mind. For one, Ferrari's stakeholders aren't pocketing all that cash - they're reinvesting it into the company: over the course of the same year, Ferrari invested some 337 million euros - 464 million dollars - in research and development. And while the company's extensive merchandizing efforts continue to bring in more cash, at 54 million euros ($74M) raised last year, the branding operation still doesn't account for a sixth of overall revenues. Still, it's little wonder that the experts at Brand Finance have named Ferrari the world's most powerful brand for the second year running.

Ferrari, not Tesla, might be the stock to buy

Last week Tesla's earnings – or lack thereof – were one of the big stories in the auto industry. As usual, the electric carmaker didn't make money, but the news sent the market, analysts, and Tesla's devoted fans into a lather. But another company, this plucky upstart called Ferrari, also attracted a positive reaction from the market and actually had the financials to back it up. Ferrari posted net revenues of $898 million (at today's exchange rates) EBITDA of $265 million (a slightly complicated way to snapshot financial performance) and an adjusted net profit of $136 million in the first quarter. The company delivered 2,003 cars, and sales of its V12 models increased 50 percent. It quietly made progress nearly a year and a half into its life as an independent automaker. For 2017, Ferrari expects to deliver 8,400 cars and rake in net revenue of $3.6 billion. No one thought Ferrari would flounder when Fiat Chrysler Automobiles spun it off in fall 2015. With a rich history, expensive products, and its own loyal fan base that's arguably even larger than Tesla's, the company seemed poised for success, though skeptics wondered how it might fare after longtime chief Luca di Montezemolo stepped down before the spinoff. Plus, the company remains within the FCA sphere, as its key stakeholders are largely connected to its former parent in some way, and Chairman Sergio Marchionne also steers FCA. Last week's results showed Ferrari is gaining footing in the evolving automotive world, and analysts responded. UBS analyst Michael Binetti reiterated Ferrari stock (RACE on the NYSE) as buy status and raised his target price from $85 to $92. Morgan Stanley's Adam Jonas was even more bullish, raising projections to $100 in the next 12 months. Shares were trading around $82 Monday morning. Both analysts viewed Ferrari as something different than a conventional automaker stock, with Binetti comparing it to luxury house Hermes, which produces high margins even for a specialty goods maker. Jonas suggested Ferrari's singular reputation and history (16 Formula One Constructors titles, the most ever) could insulate its products when autonomous and electric cars become even more commonplace. "In our view, a Ferrari is not transportation," he wrote in a note to clients. "Ownership is viewed as an exclusive club, and membership requires more than just money.

This '61 Ferrari 250 GT SWB could be yours for eight figures

The 250 GT SWB Berlinetta ranks among the most desirable of Ferraris, and this one has been under the same ownership for the last 47 years. Now it's coming up for auction. Chassis No. 2917GT served as the Prancing Horse marque's centerpiece at the 1961 Paris Motor Show, where it was displayed in light blue. Its first owner, however, only owned black cars, so he had it repainted. It changed hands a few times over the years, and was repainted in classic red somewhere along the way. That's the color it remains today. Its current owner is described as a well-regarded collector living in the Brittany region of France and has reportedly taken exceptional care of it, driving it regularly and bringing in the best mechanics to service it. But after nearly half a century in his care, he's letting it go. Artcurial will be handling its sale during the Le Mans Classic on July 9. We're waiting on word regarding how much the auction house expects it to sell for, but the records at Sports Car Market have similar examples selling in the past couple of years for upwards of $10 million. Given the apparent condition of this particular specimen, we don't doubt that it'll fetch top dollar. THE EX-PARIS MOTOR SHOW 1961 FERRARI 250 GT SWB BERLINETTA IN SAME OWNERSHIP FOR 47 YEARS – LE MANS CLASSIC, SALE 9 JULY 2016 – Paris – Artcurial Motorcars has raised its international profile in recent years by offering some of the world's rarest and most valuable cars at auction. The top ten most expensive cars ever to sell at auction include two cars from each of Artcurial Motorcars' last two Retromobile sales: the ex-Bardinon 1957 Ferrari 335 S Spider Scaglietti that sold on 5 February 2016 for 32.1Mˆ / 35.7M$ – a world record price (in ˆ and GBP) for a car sold at auction – and the 1961 Ferrari 250 GT SWB California Spider from the Baillon Collection that fetched ˆ16.3M / 18.5M on 6 February 2015. Artcurial Motorcars is also known for consigning important cars that are new to the market, a key feature of the star car in the next sale at Le Mans Classic on 9 July. The 1961 Ferrari 250 GT SWB Berlinetta #2917GT has been in the hands of the present owner some 47 years, and has had just five owners from new. This remarkable car was displayed new at the 1961 Paris Motor Show, presented in a light blue Azzuro.