Ferrari Reports Earnings Reflecting Challenges in a Time Covid-19 | Financial Buzz

Ferrari Reports Earnings Reflecting Challenges in a Time of Covid-19

Ferrari N.V. (NYSE: RACE) reported Monday its consolidated preliminary results for the second quarter and six months ended June 30, 2020. The luxury performance sports car maker also narrowed its guidance for the full year 2020. This guidance reflects an updated assessment of the projected impact of the Covid-19 pandemic on the Company’s supply chain and the resulting delay in the full production ramp up of the SF90 Stradale.

Ferrari reported Shipments totaled 1,389 units in the second quarter of 2020, down 1,282 units or 48.0% versus prior year, impacted by the disruptions of the Covid-19 pandemic, including production suspension and dealers’ closure during the initial part of the quarter. In addition, the first few deliveries of the F8 Spider and the 812 GTS commenced in the quarter, while the 488 Pista family approaches the end of its lifecycle.

Net revenues for the second quarter of 2020 were Euro 571 million, down 42.6% at constant currency. The decrease of revenues in Cars and spare parts to Euro 450 million (down 41.3% or 42.0% at constant currency) was driven by the Covid-19 production suspension that led to lower deliveries as well as a lower contribution from personalizations, partially offset by deliveries of the Ferrari Monza SP1 and SP2.

Financial charges in the quarter increased to Euro 11 million, up Euro 2 million versus the prior year, mostly reflecting higher interest expenses incurred as a result of the decision to early refinance part of the upcoming debt maturities and to secure longer tenors.