Ferrari annual report 2006: Impressive growth in revenues and profits

Ferrari annual report 2006: Impressive growth in revenues and profits  
Filed under:
News, Ferrari
on 02/20/2007

Source: Ferrari

The Ferrari S.p.A. Board of Directors, chaired by Luca di Montezemolo, met today to review the balance sheet for the financial year ended 31st December 2006. Ferrari’s three main areas of business – road cars, competition cars and brand development – yielded a significant increase in revenues from €1,289 million in 2005 to €1,447 million in 2006, a leap of 12.2% due in great part to brilliant sales of the F430 and the 612 Scaglietti as well as the immediate success of the new 599 GTB Fiorano which was unveiled only at the start of last summer.

Ferrari’s trading profit of €183 million showed a significant leap of 16.4% over the previous financial year and can be attributed principally to the rise in sales revenues and to efficiency gains which were partially offset by increased investment in research and development.

Ferrari recorded a positive net financial position also, with a balance of €213 million, a dramatic improvement on 2005’s figure of €13 million.

Deliveries of road cars (i.e. non-track cars) to their owners stood at 5,671, 4.8% up on 2005. Impressive sales in North America and Switzerland (+6%), Germany (+8%), and new or developing markets, such as the Middle East and Asia Pacific area (+15%), all made important contributions to this improvement. In all 121 Ferraris – almost double the figure of 2005 - were delivered in China where there is now a 12-strong dealership network spread across the most important areas of the country.

A total of €232 million was assigned for Investments and Research and Development (not including Formula 1). This is a 6% increase on 2005 and the equivalent of 16% of the company’s

turnover. The investments concerned, amongst other matters, the new 599 GTB Fiorano and the development of future models.

Last but not least, Ferrari’s brand development activities continued to yield double figure growth, rising an impressive 23% in 2006’s turnover, thanks both to the granting of new licensing contracts and the expansion of its retail programme (there are now a total of 13 Ferrari Shops and Stores throughout the world).

After the Board Meeting, Ferrari President Luca di Montezemolo declared: “I am particularly satisfied that the company has grown significantly once again, underscoring the importance of the Ferrari brand to the Fiat Group in the very year that the latter bought back the Ferrari shares that had been sold to the banks. These results and those to come from a company which has the benefit of a new corporate structure, with Jean Todt as CEO and Amedeo Felisa as General Manager, confirm and will continue to confirm the quality of work done at Maranello.”

Montezemolo also acknowledged the invaluable contribution made by Michael Schumacher in his 11 years as a Ferrari driver and declared himself confident of the results that both Massa and Raikkonen will deliver this season.

Summary of the main figures for year 2006:

Sales to end clients: 5,671 road use-homologated cars compared to 5,409 in 2005 (+4.8%)

Consolidated turnover: €1,447 million compared to €1,289 million in 2005 (+12.2%)

Trading Profit: €183 million compared to €157 in 2005 (+16.6%)

Net financial position: +€213 million compared to +€13 million in 2005

Resources assigned to Investments and to Research and Development: €232 million, the equivalent of 16% of turnover (€219 million in 2005, equivalent to 17% of turnover)

Employees: 2,870 as of December 31st 2006.

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