Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Ferrari shares skid as debt and outlook disappoint

Share this article

Ferrari shares skid as debt and outlook disappoint
Photo: Giuseppe Cacace/AFP
08:37 CET+01:00
Italian luxury sports carmaker Ferrari announced on Tuesday an increase in its net profit last year, but investors dumped its shares after being spooked by its debt and disappointed with the 2016 outlook.

Net profit rose at the brand with the famous prancing horse logo by 9.4 percent last year to €290 million.

The debt of €1.94 billion, the result of its spinoff from Fiat Chrysler and entry onto the Milan stock exchange, was considerably higher than the €1.7 billion expected by analysts.

Moreover, Ferrari expects the debt to rise slightly this year, while the increase in sales to shift down a gear.

While sales rose by six percent in 2015 to 7,664 vehicles, the company only expects a 3.1 percent gain this year to 7,900 cars.

Adjusted operating profit should also climb by three percent to €770 million, but revenues are only expected to rise by half that rate to 2.9 billion.

The modest outlook combined with the high debt level disappointed investors, with Ferrari shares finishing the day down 9.6 percent at €33 euros. The Milan market was down 3.05 percent overall.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

Is this the world's most international business school?

It's not just one of the world's leading business schools. It's also a chance for students to have a truly international undergraduate experience.

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement