|Bid||149.45 x 0|
|Ask||164.40 x 0|
|Day's range||156.20 - 157.45|
|52-week range||95.16 - 158.25|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg Opinion) -- Barely a year has passed since Aston Martin Lagonda Global Holdings Plc listed shares in London and persuaded investors it deserved a premium valuation similar to that of Ferrari NV. The luxury carmaker’s preliminary yearly results, published on Tuesday, were a reminder that its management badly misjudged both the strength of the brand and the resilience of its balance sheet.In reality Aston Martin isn’t a patch on Ferrari and instead faces an uphill battle just to keep the lights on. A year ago the U.K. company told investors that its dealers would probably purchase about 7,200 vehicles in 2019. In fact, wholesale volumes fell 7% to a dismal 5,800 (or about 5,900 if special models are included).Instead of the 24% Ebitda margin promised in 2019, Aston Martin achieved only 13%. This means it almost certainly lost money for the second year running. The ratio of Aston Martin’s indebtedness to Ebitda — at more than 6 times — is alarmingly high. About 3 billion pounds ($3.9 billion) of equity value has gone up in smoke since the initial public offering.Aston Martin wants investors to look past all this and focus on promising orders for the DBX sports utility vehicle, on which the fate of the company depends. Access to a second $100 million tranche of debt financing was contingent on quickly gaining 1,400 orders for the DBX, which Aston Martin has achieved.While that’s a relief, that Aston Martin now plans to draw on this very expensive borrowing reveals how fragile its finances have become. And even this might not be enough to tide the company over until DBX sales start in the second quarter.Management is reviewing funding options, including the possibility that strategic investors make an equity investment. A capital injection would reassure Aston Martin’s bondholders — while the sterling bonds sold off on Tuesday, they remain well above the October lows. But existing shareholders, who’ve suffered plenty already, must fear getting diluted (unless they engineer a takeover).In view of its salience to cash flow, the focus on the DBX is understandable, yet it shouldn’t distract from the pretty lamentable performance of Aston Martin’s core business. On Tuesday luxury rival Rolls-Royce (owned by BMW AG) confirmed its sales increased by one-quarter last year. Ferrari is expected to report a 34% adjusted Ebitda margin for 2019, almost treble what Aston Martin achieved.The British carmaker has been guilty of pushing too many cars to dealers, which puts downward pressure on pricing. Rectifying this will be a slog. Residual values for luxury cars have softened, according to Goldman Sachs Group Inc. analysts, which might make customers reluctant to pay top dollar for a new car and can make leasing expensive. Aston Martin managed to cut an inventory overhang toward the end of the year only by stepping up financing support and marketing spend.Though difficult to quantify, negative headlines about Aston Martin’s finances probably aren’t helping dealers shift models. Plenty of its customers are banker types who’ll know better than most how precarious the situation has become.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2020 Bloomberg L.P.
Porsche offers a slew of courses, or experiences, at its Porsche Experience Center in Atlanta, as well as a new facility out in Los Angeles. I decided to take the Porsche 911 GT3 experience for a spin.
Lewis Hamilton and Ferrari chairman John Elkann have met socially but talk of a move for the six times Formula One world champion is premature, according to chief executive Louis Camilleri. Ferrari had previously not confirmed the meetings, while not denying them either.
Ferrari won't have its first fully electric model ready until after 2025 as the battery technology requires more development, Chief Executive Louis Camilleri said, pushing back expectations. "The battery technology is not where it should be yet," Camilleri told reporters during a lunch in the Centro Stile at Ferrari's Maranello factory. Camilleri said Ferrari was "certainly" studying a fully electric grand tourer car (GT), but that it would stick to hybrid vehicles for the "current foreseeable future".
Six times world champion Lewis Hamilton did not deny meeting Ferrari chairman John Elkann when asked on Sunday about speculation linking the Mercedes driver with a move to the Italian team in 2021. The next deal will probably be Hamilton’s last in Formula One and he has said he is considering options outside of Mercedes, where team principal Toto Wolff’s future is also up in the air. "What happens behind closed doors is always private with whoever it is you end up sitting with," Hamilton said in response to a question about Italian media reports that he had twice met Elkann.
Six-times world champion Lewis Hamilton wrapped up the Formula One season in style on Sunday by cruising unchallenged to a dominant victory in Abu Dhabi in his 250th grand prix. The 34-year-old Mercedes driver led every lap from pole position to chequered flag, banging in a fastest lap for good measure to emphasise his supremacy under the Yas Marina floodlights.
Ferrari principal Mattia Binotto sang Lewis Hamilton's praises on Friday, fuelling speculation that the Italian team could seek to sign the six times Formula One world champion for 2021. "Lewis is certainly an outstanding driver, a fantastic driver," Binotto told reporters at the season-ending Abu Dhabi Grand Prix when asked if he would like to sign Mercedes' Briton.
Ferrari on Thursday rolled out the Roma, a record fifth new model announced this year, as the Italian luxury carmaker with the famous "prancing horse" logo looks to sustain profit and share price growth. The new grand tourer (GT) made its debut in an event inspired by director Federico Fellini's 1960 film "La Dolce Vita" held at Foro Italico, Rome's monumental sports centre and site of the 1960 Olympic games. GTs are designed to be more comfortable on long journeys than sports cars and some GTs from the 1960s among the most popular models at auctions of Ferraris.
Salini Impregilo expects to wrap up the acquisition of smaller building rival Astaldi early next year as it pushes ahead with plans to create a domestic construction champion, the group's general manager said on Wednesday. Italy's biggest construction company has made itself the cornerstone of a state-backed plan dubbed 'Project Italy' to revive the country's ailing construction industry by aggregating other players. The acquisition of Astaldi, currently under a Chapter 11-like credit protection scheme, is a key part of the project.
The ongoing pro-democracy protests in Hong Kong have ravaged the region and are threatening the safety and livelihood of residents — and businesses.
(Bloomberg Opinion) -- The mood music in the car sector is pretty melancholy right now because of Donald Trump’s trade wars and rising technology costs. But Ferrari NV is dancing to a different tune, thanks to its wealthy customers.Revenues rose 9% in the third quarter of 2019 and operating profit jumped 12% year-on-year, the Italian manufacturer reported Monday.Ferrari’s patrons are still ordering new cars despite worries that a recession might be around the corner; many are happy to pay a premium to personalize their vehicle. Ferrari was confident enough to raise its cash flow and profit guidance for 2019. On both metrics it should accomplish this year what it had planned to achieve in 2020. It even announced a more convincing strategy to extend its brand beyond cars, an area where it’s fallen short.The Italian company is making this look easy, but lifting sales while preserving exclusivity is a difficult balancing act in the luxury autos business; just look at the struggles of Aston Martin Lagonda Global Holdings Plc. That company’s shares have dropped 66% this year while Ferrari’s have gained 77%, valuing the prancing horse at more than 28 billion euros ($31 billion). That’s more than its former parent Fiat Chrysler Automobiles NV, which sells as many cars in a day as Ferrari does in a year. Investors would now have to fork out about 41 times estimated earnings to buy Ferrari stock, approaching the exalted 45 times multiple of handbag maker Hermes International. German premium carmaker BMW AG trades on less than 9 times earnings. While this is the very definition of a luxury problem for Ferrari, it still leaves very little room for error.When Ferrari listed its shares in 2015, it implored investors not to think of it as a regular carmaker but rather as a luxury goods company like Hermes. Much of that sales pitch made sense: Ferrari can charge plenty for its cars because customers expect them to hold their value or even increase. Its 25% operating profit margin is much higher than that of other carmakers and should be more resilient. There are waiting lists for some models. Unlike much of the industry, Ferrari sales held up in the last recession.Even so, it has to spend heavily on factory equipment and technology development (including for its struggling Formula 1 racing team). That will always be an impediment to matching Hermes’ operating profit margins, which exceed 35%.The biggest beef with Ferrari’s luxury company aspirations was that its non-car branded products, many produced under licensing agreements, weren’t appealing. What’s the point of a $100 Ferrari polo shirt or $250 wristwatch? Not so long ago you could even buy a Ferrari surfboard. While Ferrari dithered over how to improve things, the brand suffered.On Monday, the company sketched out a plan to slim down its clothing and accessories lines and move them upmarket with the assistance of Giorgio Armani SpA. Meanwhile, it will open driving simulation centers and expand in e-sports to get young customers excited about the brand. Within a decade it hopes these products and services will contribute about 10% of operating profit. That’s still far from certain — brand diversification is notoriously difficult — but the success of the core business leaves room for maneuver.Unlike peers such as Rolls-Royce Motor Cars and Volkswagen AG’s Lamborghini, Ferrari isn’t yet selling high-margin sports utility vehicles. The Italian carmaker’s Purosangue isn’t slated to arrive for a couple more years.But judging by Ferrari’s profit and loss statement, its refreshed product line, including the single-seat Monza SP1 and 812 Superfast, is delivering. Upcoming hybrid models such as the 1,000-horsepower SF90 Stradale supercar should increase confidence that Ferrari has the technical know-how for tougher emissions regulations.Still, it’s surprising that the carmaker seems in no hurry to build a fully electric car. Some caution is natural: An electric Ferrari won’t have the famous engine growl and some Ferrari purists are skeptical, management said on Monday’s investor call. Yet Porsche’s electric Taycan shows sportscar brands can deliver the same excitement with a much smaller carbon footprint. Ferrari proved skeptics wrong once before. It can do so again. To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Strong sales of Ferrari's Portofino and 812 Superfast models enabled the Italian luxury carmaker to raise its outlook on Monday, with a new brand strategy promising even more growth. Ferrari's Milan-listed shares rose as much as 7.4% to an all-time high of 155.15 euros after it reported "solid" third quarter results and signalled a strong year ahead. The 'Cavallino Rampante', or 'Prancing Horse', launched a plan to enhance its brand through new apparel and accessory collections, entertainment offers, and luxury products and services for clients.
Strong sales of Ferrari's Portofino and 812 Superfast models enabled the Italian luxury carmaker to raise its outlook on Monday, with a new brand strategy promising even more growth. Ferrari's Milan-listed shares rose as much as 7.4% to an all-time high of 155.15 euros after it reported "solid" third quarter results and signaled a strong year ahead. The 'Cavallino Rampante', or 'Prancing Horse', launched a plan to enhance its brand through new apparel and accessory collections, entertainment offers, and luxury products and services for clients.
Former McLaren and Ferrari engineer Pat Fry will join Renault next year, the Formula One team announced at the U.S. Grand Prix on Saturday. The Briton started out with Benetton before joining McLaren in 1993, winning world championships with Mika Hakkinen and Lewis Hamilton, before joining Ferrari as deputy technical director in 2010. "His arrival is yet another step as we build and improve our team structure," said Renault's executive director Marcin Budkowski, who worked previously with Fry at McLaren.
Nov.14 -- Ferrari has unveiled the Roma Coupe, a car recalling, according to the company, “a contemporary representation of the carefree, pleasurable way of life that characterized Rome in the 1950s and 1960s.” The car was unveiled to clients in Rome. The turbo-charged V8 propels the sports car to a top speed of almost 200 miles per hour.