MILAN -- Ferrari cut its 2020 profit forecast due to disruption caused by the coronavirus pandemic, which it said would mainly hit second-quarter results.
The company said it now expected adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to be between 1.05 billion and 1.20 billion euros. In February, Ferrari had projected an increase in 2020 EBITDA to between 1.38 and 1.43 billion euros.
Ferrari forecast a "harsh" reduction of revenues linked to Formula One, where races have been suspended, as well as reduced turnover from brand projects and lower engine shipments to Maserati.
"The guidance range reflects different and partial recovery rates of production volumes lost during the COVID-19-related suspension in 2020, and alternative scenarios in respect of the evolution of the order book in 2020," Ferrari said on Monday.
Morgan Stanley analysts said the guidance reduction was steeper than they had expected, but were encouraged Ferrari is still aiming to generate free cash flow this year. "This extraordinary level of stability in an economic crisis takes top place at the podium and we expect investors to use any weakness as a buying opportunity," they said.
Ferrari now expects industrial free cash flow of 100 million to 200 million euros this year, compared with 400 million euros or more previously.
The automaker said its new guidance did not include a potential second wave of COVID-19 infections later this year.
In the first quarter of this year, adjusted EBITDA rose 1.9 percent to 317 million euros ($347 million).
Sales volumes rose despite delivery suspensions due to the virus outbreak, driven by 488 Pista and 488 Pista Spider models, along with the ramp up of the F8 Tributo, the company said.
The margin on adjusted EBITDA came in at 34 percent in the first quarter, up from 33.1 percent a year earlier.
Ferrari said its total available liquidity at the end of March was 1.23 billion euros. Last month, it secured additional committed credit lines worth 350 million euros, with maturities up to 24 months, taking total committed, available and undrawn credit lines to 700 million euros, it said.
Ferrari on Monday restarted operations at its plants in Maranello and Modena, both located in Italy's northern Emilia Romagna region. They had been closed since mid-March.
