Ferrari shares fall after it fails to upgrade guidance despite earnings rise

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MILAN: Shares in Ferrari went into reverse on Friday as the Italian luxury carmaker failed to lift its guidance for 2019 despite strong results ...

MILAN: Shares in Ferrari went into reverse on Friday as the Italian luxury carmaker failed to lift its guidance for 2019 despite strong results in the first part of the year.

He cited the discontinuation of certain models later this year, less favorable currency effects going forward, global trade tensions, and outperformance in China in the first half of the year as customers snapped up cars in anticipation of stricter anti-pollution rules. Last month Aston Martin cut its forecasts for volumes, investments and margins for 2019, while Tata Motors' luxury brand Jaguar Land Rover posted a loss in the April-June period with analysts doubting it can be turned around in the short term.

Ferrari said performance in the April-June period was led by robust deliveries of its 8 cylinder Portofino model and higher-margin 12 cylinder 812 Superfast model. Although shipments were up for 8 cylinder models, it cautioned they had slightly decreased for 12 cylinder models.

 

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