Ferrari boss is not afraid of the electric future

• Cash flow guidance for the financial year raised to around EUR 450 million
• Income forecasts in FY and adj. EBITDA unchanged
• Adj. EBITDA at 386 million euros in Q2

MILAN, Aug 2 (Reuters) – Ferrari (RACE.MI), the sports car maker that stands for roaring gasoline engines, welcomes the move to electric and is confident of maintaining its leadership in the high-performance car market, its chairman said Monday.

The European Union last month proposed an effective sales ban on new gasoline and diesel cars from 2035 as part of its anti-global warming action.

Ferrari chairman and acting CEO John Elkann told analysts on Monday that the company, known for its “dancing horse” logo, sees the technology change as an opportunity.

“We see regulation as welcome,” Elkann said as Ferrari stuck to its main goals for 2021 after reporting core earnings just above expectations for the second quarter.

“The opportunities presented by electrification, electronics and other available technologies will allow us to make even more individual and unique products,” he said.

Elkann, the offspring of the Italian Agnelli family, which Ferrari controls through its investment company Exor (EXOR.MI), spoke weeks before the new CEO – the technology industry veteran Benedetto Vigna – takes over the helm on September 1st.

One of Vigna’s tasks could be to forge new partnerships along the lines of Ferrari’s existing association with the UK’s Yasa, now part of Daimler (DAIGn.DE), to support the transition to an electric age, Elkann said.

Ferrari’s latest limited edition special series can be seen in this handout photo that Reuters received on April 21, 2021. Ferrari / Handout via REUTERS

“We believe that within the industry, and especially outside of our industry, we will benefit greatly from partnerships and joint programs,” he said.

Ferrari has promised to launch its first fully electric car in 2025.

On Monday, the company reported a threefold increase in adjusted core earnings (EBITDA) for the second quarter to 386 million, which was just above the analysts’ average forecast of 373 million euros.

Ferrari raised its forecast for industrial free cash flow for this year from around 350 million euros to around 450 million euros, but left its forecasts for net sales and adjusted core earnings (EBITDA) unchanged. Continue reading

The shares listed in Milan fell as much as 3.45% after the results. They closed 1.9%.

Citi analysts said the unchanged earnings forecast, despite strong results for the second quarter, raised concerns that margins would likely come under pressure in the second half of the year.

($ 1 = 0.8426 euros)

Additional reporting by Stephen Jewkes Editing by Mark Potter

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