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Ferrari's China Sales Tumble
Despite briefly dipping below its $52/share IPO price yesterday, moments ago Ferrari pleasantly surprised supercar fanatics when it reported record Q3 performance, highlighting that shipments were 1,949 units, up 21%, revenues were up 9% to €723 million, EBITDA of €214 million, up 34%, leaving to a 62% jump in net profit of €94 million.
One skim of the press release confirms that while the global middle class is slowly being gutted, the top of the wealth pyramid has never had it better: The increase in EBIT "was supported by a slightly positive mix effect due to higher sales of our limited edition supercar LaFerrari and special racing car FXX K."
At least the world's billionaires have good taste.
The tersely worded press release of the new public company also provided full year guidance that saw the business continuing to boom, expecting shipments: 7.7K including limited edition supercar LaFerrari, with Adjusted EBITDA on the €725 million – €745 million range.
Overall, a great quarter.
There was just one problem: Ferrari announced that while sales across the rest of the world were solid, rising by 114 and 159 units in Europe and America, to 815 and 682 units respectively, unexpectedly sales in China tumbled by 24% in the third quarter, or down 50 units Y/Y to 157.
And while we have no reason to doubt Ferrari's optimistic outlook - after all, the only thing better for the world's richest than ZIRP is NIRP (coupled with a few more QE expansions here and there), China's unexplained tumble is very disturbing, and should lead to questions about just how strong even the wealthiest Chinese consumers truly are.
It appears investors finally read Ferrari's results...
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This is the easiest short around...Really? Ferrari? Gold and Silver just popped...wonder what's up? NOTE...this Halloween make the kids smile..give out full size candy and watch the smiles. It is amazing. Don't give that little garbage. 35 years ago..I still remember the house that gave out full packs of Bubble yum! NO smarties..Yuck. LOL
Long 'Great Wall' and rickshaws.
didn't they just float an IPO or sumpin?!!
funny how that works-and some "investment bank" somewhere lets them get away with that shit!!
China's version of subprime meltdown in the CRE space dead ahead.
http://econimica.blogspot.com/2015/10/explosion-of-china-shopping-centers-for.html
"Ferrari's China Sales Tumble"
I really feel sorry for billionaires....
Its just no fun for them anymore...everyone is poor and destitute, and there is nobody left to beat down and splash mud at as they race their Ferraris down the street.... :(
China?
They probably realized that nobody can see you driving anyways due to the small, ummm, smog problem.
pods
"see you driving"
"you say Asian driver bad? I see fine, round eye!"
Wait, YOU'RE not a billionaire?
I thought everyone at ZH was a billionaire!
Clearly CAT's problem stems from not having a super exclusive model. I am beseeching the CAT board to greenlight my suggestion of the "LaD9" immediately.
""LaD9" immediately."
I don't know...maybe an LaD9...GT?
LaD9 GT California. And put it in a new Ferris Bueller movie.
"LaD9 GT California"
LaD9 GT California...Kowalski version...now you're talkin'...
When China finally realize that they wouldn't have an economy without corruption, they'll drop all this stupid anti-corruption stuff, start mandating the construction of more Ghost Cities and everything will be fine again.
Exactly. Everything was going fine until those damn sheep started getting restless. What China needs is better teevee programming and moar fluoride in the water.
LOL. No. You misunderstand the anti-corruption stuff.
You think the Chinese communist party as one big group of people who all think the one way... No.
The chinese communist party is made up of dozens of "bosses" who have alliances and agreements with each other. It's more like a gang than a party. Or better, several gangs under one headline. The anti-corruption stuff is simply an excuse for one set of bosses to get rid of other competing sets of bosses and take over their business.
The only difference between that and the US party system is the gangs in the Chinese system don't have official names like the Republican party or the Democratic party; maybe Xi Jinping's gang, Jiang Zemin's gang etc. Like the US system it has little to do with beliefs or ideals and everything to do with money and power.
China has always been about warlords and patonage, that's never changed. The great anti-warlord campaign, in the end just ended up making them into generals. When the Japanese came, if they didn't like their current benefits they sold out immediately. It's a loose confederation of warlords pretending to be a party. Xi's a moron though, he's not fit for the position in any way and has no idea what he is doing. He knows he needs to consolidate power and that's about it, his understanding of how things actually work is rather broken. Essentially he's on path to be as bad as mao was, he's pushing an agenda that won't be realized and he will blame everyone he can find when it fails.
Ferrari doesn't make cars suitable for Chinese roads.
Sure they do. You just can't get it over the curb at the end of your driveway to get it onto that road.
Isn't that why you hire a half dozen country folk to carry your car across the curbing?
I'm sure the committee will put it that way, but it's more about China making roads so shitty no car should drive on them.
"China making roads so shitty no car should drive on them."
They need more bamboo...my floor is smooth and stellar!
Not true. Well, at first anyways. China actually builds roads quite well. The surface is at least. They cheat on the roadbeds because well... no one's gonna inspect that. As such, the drainage is crap and they get sinkhole problems. The upkeep is also crap and any moron can come and tear up patches of road for whatever purpose and use the cheapest method possible to "repair" the damage. So they start out ok, and go to shit in a hurry.
The highways though, those are done rather nicely, no major complaints there.
I look forward to the day when Janet makes me a trillionaire so I can buy me a fleet of Ferraries with all my FRNs.
Wow!!! 50 cars less in one region vs net +223 cars overall. The end of the world.
What I want to know is when are my shorts going to start working.
RACE to the bottom! There is always a peak event.
While no one was watching
http://www.wirelessweek.com/news/2015/10/senate-passes-controversial-cybersecurity-bill
Read that. Mentioned Ferrari nowhere.
Gov and industry working together, fascism defined.
That's funny. They called it a Cyber "Security" bill. That's kind of like agreeing to a company's "Privacy" Policy before using their NSAware infested crap.
Maybe rich people finally realized that sitting in bumper to bumper traffic sucks regardless of what car you're driving.
They bought the new iPhone instead
Don't forget they have those anti-graft rules now, you literally don't want to be caught dead in a Ferrari these days there.
I don't understand why China sales are down...in their ghost cities...you can drive whatever speed you want...a Ferrari would be an excellent car...ok just received a call from my Chinese friend...he said there were next to none ferrari maintenance facilities in the country and the Chinese rich refuse to use "jiffy lube" to maintain their cars...something about saving face...ok...case closed
Not in the US. Many Wall Street people will buy with their large year-end bonuses.
The dumbest thing I ever see is people driving around in these things where the speed limits are 35 and 40 MPH. I mean, whats the point?
Is it just to show everyone how stupid they are?
All the rich Chinese have snuck their money out and are sinking it into real estate in the Bay Area. Ferrari sales in California will spike in the next year.