MILAN -- Ferrari hit its recently upgraded estimate for core profit last year, helped by a jump in deliveries of its Portofino and 812 Superfast models in the fourth quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 22 percent in the last three months of 2019 to 333 million euros ($368 million), Ferrari said in a statement on Tuesday.
Adjusted core profit for the full year was 1.269 billion euros, in line with an increased estimate of about 1.27 billion euros which the company gave in November.
Adjusted core profit margin came in at 33.7 percent, short of a company's target of 34 percent, but still a return most carmakers only dream of. Rival Aston Martin has a margin below 7 percent while Porsche has an operating margin of about 17 percent.
Ferrari launched a record five new models in 2019, including the Roma Coupe with a mid-front-mounted 620-hp engine and the F90 Stradale, the automaker's first plug-in hybrid car in series production.
Shipments in 2019 were 10,131 units, a 9.5 percent increase from the previous year.
Ferrari said the biggest increase in shipments in 2019 had come from China, Hong Kong and Taiwan but demand from the region slowed towards the end of the year.
CEO Louis Camilleri said its performance was especially weak in Hong Kong and he did not rule out that the coronavirus outbreak might have an impact this year.
He said Ferrari could cope with slower orders from Asia, however, by speeding up deliveries of its supercars, which typically have waiting lists of least a year, to other parts of the world where demand was stronger.
"That's the beauty of this company, we can offset it geographically," Camilleri said. "I think we can offset weaknesses in China if it's for a few months."
Shipments to China, Hong Kong and Taiwan rose 20 percent last year to account for about 8 percent of overall deliveries, even though they slumped 65 percent in the fourth quarter of 2019.
The company raised its earnings outlook for 2020, saying it planned to boost adjusted core profit to 1.38 billion to 1.43 billion euros compared with a previous target of above 1.30 billion euros. It increased its forecast for 2020 net revenue to 4.1 billion euros from 3.8 billion euros.
Morgan Stanley analysts said the outlook was slightly below market expectations though they did not expect a material reaction in the share price, which has been riding high.
In a bid to extract more growth, Ferrari launched a plan last year to enhance its brand through new clothing and accessory collections, entertainment offers and other luxury products and services.
The strategy includes a manufacturing agreement with Italian fashion house Giorgio Armani and the opening of a new restaurant with Michelin-starred chef Massimo Bottura in the company's home town of Maranello in northern Italy in late 2022.
Bloomberg contributed to this report
