Ferrari’s 4Q17 earnings
Previously in this series, we looked at some key factors that drove Ferrari’s (RACE) solid 4Q17 and 2017 performance in Europe, including France and its home country, Italy. Due to higher demand for the GTC4Lusso family car models, RACE’s 2017 shipments to the region grew. Within the Europe region, the United Kingdom is the largest market for Ferrari.
UK demand rose
The UK is one of the oldest and most loyal markets for Ferrari within the EMEA (Europe, the Middle East, and Africa) region. In 2017, the company’s vehicle shipments to the United Kingdom rose ~10.0% YoY (year-over-year).
Ferrari began the first UK deliveries of the Ferrari GTC4Lusso T in 2Q16, which drove demand higher for the third consecutive quarter in 4Q17. The 488 and other GTC4Lusso family car models also performed well in the country.
The UK is also an important market for mainstream automakers (XLY) including Volkswagen (VLKAY), Ford (F), and Fiat Chrysler (FCAU). Despite minor weakness seen in these companies’ European sales in 2016, auto demand largely showcased recovery in 2017.
Performance in the rest of the Asia-Pacific region
In the Asia-Pacific (excluding Greater China) region, Ferrari’s 2017 shipments stood at 1,233 vehicle units compared to 1,098 units shipped in 2016, up 12.0% YoY. A solid rise of 15.0% YoY was also reported in the company’s 4Q17 shipments to the rest of the Asia-Pacific region.
Within the region, 2017 shipments to Japan rose in the mid-single-digits. Its shipments to Australia and other key Asia-Pacific countries registered double-digit growth last year.
Next, we’ll review Ferrari’s 4Q17 and fiscal 2017 profit margins.