Shipments to EMEA
In 1Q18, Ferrari (RACE) reported shipments of about 1,103 car units to the EMEA (Europe, the Middle East, and Africa) segment. These shipments were about 7% higher than the 1,034 car units shipped in the first quarter of 2017. In the previous quarter, the company reported a 6% YoY (year-over-year) decline in its EMEA market shipments to 799 units.
Key drivers in 1Q18
In 1Q18, Ferrari’s shipments to Italy and France witnessed solid positive growth YoY. Shipments to Ferrari’s home country, Italy, rose 16% in the first quarter while shipments to France increased 10% YoY. At the same time, Ferrari’s shipments to Germany also rose 4% YoY in 1Q18.
Continued high demand for 488 and GTC4Lusso family cars and the launch of the 812 Superfast model drove shipments higher in Italy, France, and Germany.
The company also reported double-digit positive shipments growth to other European countries in the last quarter. In contrast, its shipments to the Middle East continued to showcase weakness due to tough economic factors in the region.
European auto market
In the last couple of years, mainstream auto companies (XLY) have faced challenges in Europe due to political and economic instability, especially after Brexit. These auto companies included General Motors (GM), Toyota (TM), and Ford (F). In early 2017, GM announced its exit from the European market after struggling to protect profitability for several quarters.
Continue to the next part of this series, where we’ll look at Ferrari’s 1Q18 performance in its other key markets, including the UK market, which is part of the EMEA segment.