Ferrari NV will be the new supercar brand after Fiat Chrysler Automobiles NV spins off its most treasured possession, with the new company already seeing rising profit on the back of higher sales.
The ultra-luxury supercar marquee has announced its full year profit tally could be 7.5 percent higher than last year following the announcement that its third quarter has jumped 35 percent on the back of faster deliveries of models such as the California roadster. During the past quarter the adjusted earnings before interest and taxes soared from 104 million euros during the same period last year to 140 million euros ($155 million), said the Maranello, Italy-based company. The surge was owed to a 21 percent sales rise to 1,949 units. The company recently debuted on the New York Stock Exchange through an initial public offering for 10 percent of its shares and has now forecasted adjusted earnings before interest, taxes, depreciation and amortization for the entire year would come between 725 and 745 million euros, as opposed to 693 million euros last year. Total sales will reach 7,700 vehicles, including the LaFerrari limited edition flagship.
FCA pushed out 10 percent of Ferrari during the IPO that has valued the company at close to 10 billion dollars and will distribute the rest of its controlling stake among its own shareholders – lifting its intrinsic value in the process – with the spin off to be completed early in 2016. The plans has been part of a wider strategy to secure the cash for a 48 billion-euro investment program that would expand the Jeep, Alfa Romeo and Maserati brands worldwide.