F1 shortfall pushes Ferrari to lower 2020 targets

No car manufacturer is spared from the Coronavirus pandemic. Order books Ferrari although they are copiously full and deliveries are on the rise, the Italian brand is now targeting a 2020 turnover of between 3,4 and 3,6 billion euros while it was counting on more than 4,1 billion euros before the deterioration of the health situation. 

The Maranello manufacturer made this known during the presentation of its financial results at the end of the first quarter of 2020. Ferrari explains that the forced break of the world championship Formula 1 has a significant impact on its accounts, despite an almost stable turnover of 932 million euros over the first three months of the year. 

Compared to the first quarter of 2019, Maranello recorded a drop of 30% and almost 40 million euros in commercial and sponsorship-related revenues (89 million compared to 128 last year), which mainly depends on F1 activity. Revenues from attendance at Ferrari museums and stores, as well as those from the sale of engines to Maserati, are also at half mast.

« There is no way to compensate for the loss of sponsorship revenues, particularly those generated by the commercial rights holder. (the FOM), said Louis Camilleri, CEO of Ferrari. The loss is mainly felt in net profit, with some offsets, but it is still a significant loss. The good news is that it's limited to this season, hopefully at least ».

The Italian manufacturer is also planning a complicated second quarter of 2020 but it has just relaunched its production in the Maranello and Modena workshops, under very strict hygiene conditions defined by a business plan called “Back on track”.