Ferrari Enjoys Record 2008
February 10, 2009
MARNELLO, Italy -- Ferrari bucked the trend of the global auto industry and reported higher
vehicle sales and higher revenues in 2008, according to a statement released by its board of directors Tuesday.
"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," Ferrari Chairman Luca di Montezemolo said in a statement.
"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," he added.
Ferrari sold 6,587 cars in 2008, up 2 percent from the 6,465 cars it sold in 2007. Revenues rose 15.2 percent to the equivalent of $2.5 billion. Ferrari attributed the higher revenue to sales of its pricier 430 Scuderia, 612 Scaglietti and 599 GTB Fiorano 12-cylinder models.
In North America, Ferrari's largest market accounting for 26 percent of its total sales, the company sold 1,700 cars, about the same as in 2007.
In Eastern Europe, Ferrari sales continued to gain, with a 23 percent increase over 2007, while sales in Western Europe were flat. Sales in the Middle East and South Africa grew 12 percent to 366 units.
In Asia-Pacific, Ferrari sold 1,089 cars. Japan was the largest market selling 433 cars, up 15 percent from 2007. In China, Ferrari exceeded 200 cars for the first time ever. Chinese sales rose 20 percent to 212 units.
Ferrari's directors also reported the sports car maker's return on sales growth, which hit 17.6 percent in 2008, up from 15.9 percent the previous year. "This was an outstanding result in the car sector in general and is especially impressive given the very tough economic backdrop against which it was achieved, particularly in the second half of the year," the company noted in its statement.
The Italian automaker said the higher return on sales was due to cost-cutting combined that helped offset disadvantageous exchange rates and wider array of mdoels in its portfolio.
The company also credits the 2008 launch of its Oneo-to-One Personalisation program on its 12-cylinder models as helping its revenues and returns.
Ferrari also enjoyed strong growth in its brand-related activities, including licenseng, retail and e-commerce, which in total had a 28-percent revenue increase. The e-commerce segment did particularly well, with its revenues soaring 65 percent above the previous year's levels. Generating millions of hits on Ferrari's Web site were the launch of the Ferrari California and the unveiling of the new F60 single-seater.
While the company invested 18 percent of its revenues in R&D, the company also spent significantly on employee services, including safety systems and safety training. The company launched an in-house energy production plan. A newly unveiled photovoltaic plant and trigeneration plant will be completed within the next few months so that Ferrari can generate its own energy.
Its workforce of 3,000 people received new services, including special mortgage deals for up to 100 percent for first and second homes and home renovations, banking facilities with attractive terms and discounts on school books for trainees and school children. The company's health plan includes free gym usage as well as philsicals for all employees and their children.
As for 2009, Ferrari's chairman warned: "The economic climate in 2009 still remains very uncertain as the crisis takes its toll across the globe. 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."
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