Ferrari’s [NYSE:RACE] listing on the New York Stock Exchange on October 21st went off without a hitch, with the company’s share price opening at $53 and almost immediately rising to $55. Since then, the initial euphoria has worn off, with the share price closing yesterday at $51.87. And for some of Ferrari’s die-hard fans there are also concerns the brand may start to lose its exclusivity now that it has numerous shareholders to please.
New chairman Sergio Marchionne has been quite vocal about boosting production beyond the annual 7,000-odd limit imposed by his predecessor Luca di Montezemolo, and he reaffirmed this to analysts this week by stating that he expects production to reach as much as 9,000 units by 2019 and that it will take a few years “to determine the natural limits of the brand.” Speaking of the brand, Marchionne also said he sees Ferrari as more of a luxury goods brand than an automaker.
Deliveries of Ferraris are already up substantially this year. The company has reported 1,949 delivers for the third quarter of 2015, which is up 21 percent on the same period a year ago. This has seen a substantial rise in profits, too, with the company reporting 91 million euros (approximately $99.7 million) net profit for Q3, up 62 percent on one year ago. Ferrari says it is on track for approximately 7,700 deliveries this year.
While most markets saw deliveries rise, things aren’t booming everywhere. It appears even Ferrari has been affected by the slowdown in China, with its deliveries for the “Greater China” region reported to have plunged 24 percent on figures from one year ago. Ferrari also pointed out that deliveries of its 12-cylinder models are down 17 percent from one year ago, explaining that these models, the FF and F12 Berlinetta, are now at or approaching their fourth year on the market and are thus due for a mid-cycle update.