Sales Up and Profits Soar at Ferrari for 2008

While Rome is burning, along with the rest of the world, Nero, or rather Ferrari Chairman Luca di Montezemolo is playing

his violin. Yes, the music is sweet at the exotic manufacturer's Maranello headquarters, despite the cacophony of discord that surrounds. Even the great financial powerhouse Porsche is suffering its first losses in as long as anyone can remember, but the Italian stallion seems impervious to the challenges other exotics and mainstream brands are experiencing.

In a year that will see Toyota lose something in the neighborhood of $5 billion, its first losing year in 71 total, Nissan out some $3 billion, and the Big 3 collectively losing as much as the GDP of some sizeable countries, the most revered sports and super car brand is holding up glasses of limoncello and toasting their success.

Having just released their 2008 financial results, Ferrari shows extremely good numbers with overall volume up 2-percent to 6,587 cars delivered. Most of that volume, 26-percent, went to the US (an all-black special edition of the California might be appropriate considering the numbers of cars Ferrari sells in the Golden State) although Eastern Europe enjoyed the strongest growth, up 23-percent.

Volume and growth is important, of course, but profit is what truly matters. To that end Ferrari enjoyed a 27-percent rise in profits to €339 million ($441 million), with a return on sales up 17.6-percent. Still, while Ferrari has done well during a year that has been carnage for mainstream brands and some high-end players, the company is aware its fortunes could change quickly if the economic downturn continues.

Can Ferrari remain in the black during 2009? Anything is possible, with exotic and ultra-luxury carmakers often faring better than lower-end brands more dependent on financing, but it will take some crafty planning and a little luck to keep an even keel let alone celebrate another year of profits.