MILAN -- Ferrari cut its long-term profit goal, a month after new CEO Louis Camilleri called the targets of previous management "aspirational."
Ferrari now expects earnings before interest, tax, depreciation and amortization to be in a range of 1.8 billion to 2 billion euros in 2022, down from the old target of 2 billion euros set by his predecessor Sergio Marchionne, he told investors. The stock fell as much as 3.7 percent in Milan trading before recovering most of the decline.
The revision was the only negtive note in an otherwise upbeat presentation, which included details of a number of new model launches by 2022 and a focus on hybrid engines. The cut shows the pressure facing the Camilleri, who took over from Marchionne in July, just days before the legendary Fiat and Ferrari boss died.
The profit goal is "ambitious but doable," Camilleri said, as he unveiled plans to add electric power to more than half Ferrari's lineup. The company will make its first-ever SUV, highlighting how even a manufacturer long synonymous with high-performance gasoline cars is going with the times to meet its ambitious growth targets.
About 60 percent of total production will have a hybrid engine by 2022, and Ferrari will start selling an SUV called the "Purosangue" -- or thoroughbred -- by then, the company said as it briefed investors on its five-year development plan.
For any purist Ferrari fan worried about that new direction, there was also a taste of what Ferrari does best: the carbon-fiber, 810-horsepower Monza charged with a V-12 engine and in one-seat and two-seat versions.
2-billion-euro target
Camilleri has a lot riding on the broader portfolio. He inherited a target from his predecessor of doubling profit to 2 billion euros ($2.3 billion) by 2022.
Ferrari has gained by about a third this year, makes it the second-best performer in the Stoxx 600 Automobiles & Parts Index in 2018, behind PSA Group.
While the Monza is part of an ultra-rare, ultra-expensive crop of special editions, it's a niche that is important for automakers like Ferrari and rivals like Lamborghini: it helps burnish their high-performance credentials and guarantees a buzz with prospective buyers and fans alike, while helping the bottom line because margins on these cars are even higher than with the already-expensive standard edition models.
The Monza is heir to the iconic Barchetta model, according to the company. The price will be released at the Paris auto show next month, though it will likely break through the 1 million-euro barrier like previous special editions. The Monzas have already been assigned to some of Ferrari's most loyal clients, who had a preview of the car last night.
Fifteen new models
Between next year and 2022, there will be 15 new model launches, and the average retail price for cars will increase "significantly," according to Ferrari's head of sales, Enrico Galliiera. One notably departure from its high-powered heritage will be the introduction of smaller V-6 engines, which were also announced at the investor meeting.
The Purosangue SUV was hatched by Marchionne, who had promised to introduce the fastest SUV to the market. Camilleri's presentation on Tuesday provided some more details, while pushing back the introduction of the model by a full two years.
Either way, the Purosangue will meet an increasingly crowded field of ultraluxury or high-performance SUVs: Lamborghini has the Urus, Rolls-Royce the Cullinan, and Bentley the Bentayga. Luxury offerings include the Maserati Levante and the Jaguar F-Pace, while Mercedes-Benz just upgraded its G Wagon, which -- despite its rugged no-frills appearance -- commands a luxury price tag.
Still, Ferrari was careful not to market the car as just another SUV.
"I abhor hearing SUV in the same sentence as Ferrari,' Camilleri told investors at the automaker's headquarters in Maranello, Northern Italy. 'As a diehard Ferrarista, I was a little skeptical when the concept was first voiced at the board. Having now seen the wonderful design and the extraordinary features I am a hugely enthusiastic supporter.'
