What global pandemic?
Automakers and their suppliers have been hit particularly hard by the pandemic. Factory shutdowns have caused a lack of dealership inventory to already reluctant consumers, many of whom have been furloughed from their jobs or were fired outright. But one automaker seems to be emerging from the crisis in relatively solid shape.
Ferrari has just released a trimmed-down 2020 earnings forecast report and there are reasons to be hopeful. While the Italian supercar company's second-quarter income dropped by 60 percent, sales performed better than expected compared to mainstream brands.
Ferrari CEO Louis Camilleri said orders remain "very strong" and orders in Q2 were up by double digits compared to the same time last year.
"Demand remains vibrant and our order book is up significantly," he said. All told, Q2 earnings dropped to $145 million, but that's still in line with what many analysts predicted. Ferrari has also re-adjusted its 2020 earnings forecast to be between 1.075 billion to 1.125 billion Euros compared to May's 1.05 billion to 1.20 billion prediction. Total 2020 revenue is expected to surpass 3.4 billion Euros. In other words, Ferrari is already on the road to recovery and the stock market immediately responded.
While road car sales alone aren't Ferrari's sole source of income (others include merchandise, an official museum and theme park, and commercial deals involving Formula 1), consistent vehicle sales are making it possible for Ferrari to stick with its plan to launch two new supercars by the end of the year.
"Things are slightly delayed but the plan remains intact," Camilleri said. "Next year we have some exciting models that will be presented." Let's put it like this: along with Tesla, Ferrari is one of the very few automakers whose shares have increased this year.