Hendren Group are advising clients on Ferrari Spa as the Italian sports car manufacturer continues its record run of profitability backed by stellar sales.
(1888PressRelease) September 19, 2013 - Hendren Group is a financial management and investment company dealing with investment methods and strategies. Based in Tokyo boasting a large base of private clients and a well skilled team of advisors, they conduct research and then subsequently develop short and long-term systematic approaches to achieving optimum returns on investments for themselves, their associates and for their current client base.
The year so far has been another very successful one for Ferrari Spa, as the high-end automaker follows on from its achievements in 2012. The company's La Ferrari, their first hybrid powered vehicle sold out its entire 499-car production run even before its first showing. The $1.34 million, 963 hp sports cars success has already led to plans for a follow on hybrid project and prompted fellow luxury marketed manufacturers Porsche and BMW to announce their own hybrid super car models.
Ferrari has shown that the luxury market is more than open to more energy efficient cars, so long as production values, performance and exclusivity are not compromised. In the high-end car market, it is often a complicated art to maintain high values in limited production runs while being able to remain profitable. Ferrari has consistently delivered on this since Luca Cordero di Montezemolo took the helm as Chairman in 1991.
"Almost everyone looks at a Ferrari as a highly tuned performance car, but the reality is that it's the same as a business model. Their parent company Fiat, has a best-case cost to profit ratio of 7.7 percent, Ferrari just increased their 2 percent to 15 percent while maintaining limited production. This tiny part of the Fiat Empire accounts for 10 percent of total earning at nearly double the profit margin, that's performance," said David Holmes, Senior Vice President of Mergers and Acquisitions at the Hendren Group.
Even with Ferrari planning to complete the last of its 200 La Ferrari hybrids by 2014 and the introduction of the 458 Speciale model later this month, they intend to lower deliveries by 400 cars this year. The company has stated its clear intention to match its record 2012 profit of €350 million aside from earnings on its hybrid offering. The company's shares continue to climb higher for the year with their ROI currently at 35 percent.
The Hendren Groups Senior Vice President David Holmes concluded, "People use the term Ferrari like performance to describe many different things. However, it really does apply perfectly to the automaker's business operations, they have never been one to rest on their laurels and this is reflected just as clearly in the market value as it is on the track. The company is a consistent long-term performer and always looking to improve even under an umbrella as large as Fiats. As we continue to monitor their performance we are more than optimistic on their investment potential."
Hendren Group is set to continue to advise clients to acquire shares within the markets adding to successful diversified portfolios.