Ferrari defies industry odds with increase in first quarter of 2019

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The luxury car maker’s shares have gained 42% since the start of the year

Milan — Ferrari served up more proof the Italian super-car maker can push through headwinds that have beset much of the automotive industry, delivering a rise in first-quarter profit that beat the highest estimate.

Growth in deliveries from the entry-level Portofino model helped offset the end of the sales of the $2.1m LaFerrari Aperta. The shares have risen the most in three months. While Ferrari reported a jump in profits and steep rise in shipments, other car makers have struggled with slowing economic growth and record spending on electric-vehicle technology. On Tuesday, BMW reported a 42% slump in automotive-making profit faced with increasing competition in weakening markets and costly pressures to keep up with tightening emissions regulation.

The rise in profit shows CEO Louis Camilleri is getting traction on a target to generate €2bn in adjusted ebitda no later than 2022 for the brand. Camilleri is planning more profit-boosting, limited-edition sports cars to reach this goal, and will unveil a record five new models in the coming months.

 

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