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Ferrari SpA Announces 1999 Financial Results
The Ferrari S.p.A.'s Board of Directors have released the 1999 trading figures for the Ferrari Group and Maserati.
The Ferrari marque's profits totalled E47 million (ITL91 billion) which is in line with the previous year's result. The operating profit equates to 7.2 per cent of turnover, an excellent result given that this figure includes the sums invested in Formula 1 for the construction of the new car.
As far as the Group's results are concerned, last year saw an operating profit of E23.5 million (ITL45.5 billion) which is over double that of the previous financial year. Profit increased from 1.8 per cent to 3.1 per cent of turnover. The consolidated figure was again affected by Maserati's losses which, while improving (losses were down 30 per cent compared to 1998), still amounted to E23 million. This result reflects the substantial investments made in research and development for future models in line with the programme to relaunch the marque.
Total Group turnover for the year was E758 million (ITL1.467 billion), up 22.8 per cent over 1998. Gross profit prior to tax was E7.8 million (ITL15.1 billion) compared to E2 million the previous year.
Net profit dropped to E5.8 million from 1998's 8.1 million due to higher taxes and the increase in value of Maserati's losses covered by the Group after buying out the remaining 50 per cent of the company. E61.2 million (14 million more than in 1998) were ploughed back into the company to finance the Group's product development and customer services programmes and to provide investments in production facilities. Total investment in R&D (financed entirely from revenue) amounted to E131 million - 21 per cent more than in 1998. This figure underlines Ferrari's continuing commitment to excellence, both in the quality of its products and in its production facilities.
1999's commercial results were very positive with total sales of 5,313 units (28 per cent more than in 1998). Ferrari recorded its sixth successive annual increase in sales with 3,775 cars sold, while Maserati tripled its sales to 1,538 units compared with 1998.
North America once again proved to be Ferrari's major market with over 1,000 cars sold there alone. Second, as far as combined Ferrari and Maserati sales are concerned, was the German market which took a total of 941 cars, including 321 Maseratis. That figure makes Germany Maserati's number one market.
In 1999 Ferrari more than doubled its enterprise value compared to the previous financial year. The net average return on capital invested was 12.5 per cent, a figure that exceeded objectives thanks to the further development of up-market added-value, with the commercial development of the company's badge, sales of know-how and the customisation programme for its range of cars.
At the end of the meeting held in Maranello the President of Ferrari, Luca di Montezemolo, declared his satisfaction with the positive start to 2000. Ferrari sales are up 15 per cent compared to the same period last year and Maserati sales have doubled, while the Formula 1 team has already racked up two wins in the first two races of the season, earning 26 championship points compared to the 18 scored last year.
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