MILAN (Reuters) – Luxury carmaker Ferrari (MI:RACE) trimmed its full-year earnings forecast on Monday after second-quarter income plunged due to supply chain and production disruptions due to the coronavirus pandemic.
The company known as the ‘Prancing Horse’ said production suspensions and “significantly” lower sponsorship and commercial and brand revenues due to the pandemic resulted in a 60% drop in adjusted EBITDA to 124 million euros ($145 million) in the second quarter.
That was in line with a Reuters analyst poll of 120 million euros.
As a result, the company said it now expected full-year adjusted earnings before interest, tax, depreciation and amortization (EBITDA) would come in at between 1.075 billion euros ($1.26 billion) and 1.125 billion euros.
That compares with the already-cut guidance it provided in May for an adjusted EBITDA between 1.05-1.20 billion euros.
“This guidance reflects an updated assessment of the projected impact of the COVID-19 pandemic on the company’s supply chain and the resulting delay in the full production ramp up of the SF90 Stradale,” Ferrari said in a statement, referring to its hybrid electric model.
Milan-listed shares in Ferrari fell after the results before turning higher as the Italian market rose and were up 1.9% at 1155 GMT.
Ferrari said it was hit by the temporary suspension of the Formula 1 season which resulted in a reduced number of races as well as reduced in-store traffic and museum visitors.
The carmaker now expects its revenues to top 3.4 billion euros this year, versus a previous guidance of between 3.4-3.6 billion euros.
However, it said it still expected to generate free cash flow this year of between 100 million-150 million euros.