Recession? Ferrari hit record profits in 2008
Ferrari S.p.A has recorded yet another record year with an improved return on sales, reaching 17.6% compared to 15.9% in 2007. The result is especially remarkable in times where other car manufacturers mark record losses due to the financial crisis that is going on.
The result comes courtesy of Ferrari’s diverse range of products and strict cost-cutting measures. That said, investments in research and development increased, reaching 18% of revenues in 2008. Improvements and efficiencies also helped compensate for unfavorable dollar and sterling exchange rates.
Commenting on the figures, Ferrari Chairman Luca di Montezemolo declared: "Ending 2008 with results unprecedented in the entire history of the Company is the best endorsement we could have of our strategy of exclusivity, innovation and focus on people. These results beautifully cap a truly exceptional year that saw us once again at the top in Formula 1, winning our 16th Constructors’ title, our eighth in the last 10 years."
"The economic climate in 2009," continued the Ferrari Chairman, "still remains very uncertain as the crisis takes its toll across the globe and it is hard to say how the situation will develop from here. That means, of course, that Ferrari will have to lavish even more attention on every single detail and continue to innovate whilst preserving the exclusivity of our products with respect to market demands."
Ferrari ended the 2008 financial year with revenues of 1,921 million euro, an increase of 15.2% on the 1,668 million euro recorded in 2007. This rise comes mainly as a result of sales of the 430 Scuderia and the excellent performance of both the 612 Scaglietti and 599 GTB Fiorano 12-cylinder models which benefited from the launch of the One to One Personalization Program. The Ferrari California, however, made no contribution to the 2008 figures as the first examples are only being delivered to their owners in the next few days.
A total of 6,587 cars were delivered to end clients in 2008, an increase of 2% with respect to the 6,465 cars delivered in 2007. While North America remains its largest market with 1,700 cars (26% of the world total), sales to Eastern Europe (+23%) and those in the Middle East and South Africa (+12%) continue to grow.
Ferrari returned a trading profit of 339 million euro in 2008, an increase of 27% on previous year’s figure.
2008 also saw the launch of an in-house energy production plan. A newly unveiled photovoltaic plant and a trigeneration plant due to be completed within the next few months, will mean that Ferrari will meet all of its own energy requirements within the next year.
In terms of its workforce, as of December 31st 2008, Ferrari employed around 3,000 people, a little under half of whom are office staff.
Continuing its emphasis on people-focused activities, Ferrari also launched its Scuola dei Mestieri in 2008. This new program is designed to provide training inside the plant which is not normally available outside Ferrari in specialist skills to allow our employees to enhance both their career prospects and professional development and improve their mobility within the company.
Ferrari also broadened the range of employee services in 2008. These now include special mortgage deals of up to 100% for first and second homes and renovations, banking facilities with very attractive conditions and discounts on school books for trainees and school children. There is also a preventative health plan featuring specialist visits, physicals for all employees and their children and free gym usage. Source: Ferrari