Selling Fewer Cars is Paying Off for Ferrari

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decision to stop increasing sales in favor of increasing prices and brand exclusivity is already bearing fruit for the company. Through the first three quarters of the year, Ferrari’s revenue is up 6.7% to €1.711 billion; earnings before interest and taxes increased 15% to €454 million, and net profit was up 23% to €178.8 million. These increases come even though the company sold 5,264 cars worldwide in the first three quarters, three fewer than in the same period in 2012. The company holds €1.35 billion in cash for future investments, its highest ever.

“I am very satisfied with the results for the first nine months of 2013. They are the fruit of our constant focus on exclusivity, which guarantees significant returns for our shareholders as well as growing numbers of services for clients,” said Ferrari Chairman Luca di Montezemolo. ”The revenues from personalization programs and Ferrari Classiche’s activities ably demonstrate this fact and the latter will receive an additional boost when a dedicated center for collectors opens in the US.”

Regionally, Ferrari sold 1,627 cars in North America, up 8%. Ferrari did not give sales for Europe as a whole, but the UK was up 15% to 580 cars, Germany down 3% to 520 cars, and Italy down 3% to 145 cars. Sales in the Middle East increased 40% to 382 cars. Japan took 250 cars, up 17%. China has fallen to 139 sales so far this year from 427 cars at this time last year due to higher taxes on luxury goods.

The rising profits are partially attributed to more customers using Ferrari’s Atelier and Tailor Made personalization programs. The restoration of classic cars is also bringing in money. However, a significant increase in profits comes from licensing the name for clothing and other items.

The sales of Ferrari-branded items increased by 17% in the first three quarters, and income from licensing the name increased by 3%

Ferrari is creating, yet-unnamed company that will be 100% controlled by it to focus on branding opportunities fully. It will have separate management from the automotive side of the business.