Ferrari’s 1Q18 earnings
Previously in this series, we looked at some key factors that drove Ferrari’s (RACE) solid 1Q18 performance in Europe, including France, Germany, and its home country, Italy. Due to higher demand for GTC4Lusso family car models and the 812 Superfast, RACE’s shipments to the region witnessed a notable rise last quarter. Within Europe, the United Kingdom is the largest market for Ferrari. Let’s find out how the company performed there in 1Q18.
UK shipments rose 11% YoY
The United Kingdom has been one of the oldest and most loyal markets for the Italian luxury carmaker within the EMEA (Europe, the Middle East, and Africa) region. In 1Q18, the company’s vehicle shipments to the United Kingdom rose ~11% YoY (year-over-year).
Just like in other international market, 488 and other GTC4Lusso models also continued to perform well in the UK market. High demand for these vehicles erased the negative impact of the discontinuation of the California T, F12berlinetta, and F12tdf models in the UK market. These three models either were phased out or completed their lifecycle in 1Q18.
The United Kingdom is also an important market for mainstream automakers (XLY) Volkswagen (VLKAY), Ford (F), and Fiat Chrysler (FCAU). Despite minor weakness in these companies’ European sales in 2016, auto demand in the region largely recovered in 2017.
Performance in Asia-Pacific
In Asia-Pacific (excluding Greater China), Ferrari’s 1Q18 shipments stood at 273 vehicle units, compared to 263 units shipped in 2017, up 4% YoY. In 4Q17, the company’s Asia-Pacific shipments rose 15% YoY.
Within the region, shipments to Japan rose by mid-single digits while shipments to Australia and other Asia-Pacific countries registered minor low-single-digit growth last quarter.
Next in this series, we’ll review Ferrari’s 1Q18 profit margins.