Italian luxury carmaker Ferrari posted a strong 17% year-on-year increase in net profit for the first quarter of 2025, but warned that U.S. import tariffs could pose a threat to its earnings outlook for the year ahead.
The company reported a net profit of €412 million ($466.3 million) for Q1, citing robust demand and increased vehicle personalization as key drivers of growth. Despite limited growth in shipments, Ferrari said all major financial metrics saw double-digit improvements.
“Another year is off to a great start,” said CEO Benedetto Vigna. “With very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring strong profitability driven by our product mix and continued demand for personalizations.”
However, the upbeat earnings were tempered by caution surrounding U.S. trade policy. In its earnings statement, Ferrari flagged the risk of a 50 basis-point reduction in its EBIT and EBITDA margins if new U.S. tariffs on EU automobile imports take full effect.
“The (2025) guidance is subject to a potential risk of 50 basis points reduction on profitability percentage margins (EBIT and EBITDA margins), in relation to the update of the commercial policy following the introduction of import tariffs on EU cars into the USA,” the company stated.
President Donald Trump’s shifting tariff policies have disrupted global automakers, especially luxury brands reliant on transatlantic trade. In April, Trump imposed a 25% tariff on European automobile imports, prompting Ferrari in late March to raise prices on some models by 10% in an effort to offset the added costs.
While Trump issued a partial rollback of certain overlapping duties—including extra tariffs on steel and aluminum—analysts say the core automobile import tariff remains in effect, posing a continuing risk to European carmakers.
Ferrari’s 2025 financial guidance projects adjusted earnings per share of €8.6, net sales exceeding €7 billion, and EBITDA of at least €2.68 billion. The company’s ability to maintain that trajectory, however, may hinge on the evolving U.S.-EU trade environment.
Chinese companies are ramping up investment in Indonesia to avoid steep U.S. import tariffs and tap into Southeast Asia’s largest consumer market....
Bitcoin surged to a new all-time high as expectations grow for U.S. interest rate cuts and regulatory moves favouring crypto investment, boosting inve...
U.S. Secretary of State Marco Rubio has revoked or restricted visas on Wednesday, for certain officials from Africa, the Caribbean, and Brazil tied to...
The U.S. government on Wednesday signed an executive order to ease federal regulations on commercial rocket launches, potentially benefiting SpaceX an...
North Korea’s Kim Yo Jong, a senior official in the ruling Workers’ Party, said on Thursday that South Korea’s belief in Pyongyang’s response ...
Lewis Hamilton said on Thursday it could take months to get to grips with his new Ferrari and he was paying no attention to those questioning his performances.
Vintage sports cars showcased at the Grand Palais in Paris are set to be auctioned. Rare models are expected to fetch millions, drawing the attention of car enthusiasts.
Carlos Sainz won the Mexico City Grand Prix, capitalizing on Max Verstappen's penalties, while Lando Norris finished second, reducing Verstappen's championship lead to 47 points with four races left.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
A resumption of Iraq’s Kurdish oil exports is not expected in the near term, sources familiar with the matter said on Friday, despite an announcement by Iraq’s federal government a day earlier stating that shipments would resume immediately.
A magnitude 5.2 earthquake struck 56 kilometres east of Gorgan in northern Iran early Sunday morning, according to preliminary seismic data.
U.S. Secretary of State Marco Rubio has revoked or restricted visas on Wednesday, for certain officials from Africa, the Caribbean, and Brazil tied to Cuba’s overseas medical worker programme, citing concerns over forced labour and financial exploitation.
North Korea’s Kim Yo Jong, a senior official in the ruling Workers’ Party, said on Thursday that South Korea’s belief in Pyongyang’s response to peace overtures is a “pipedream.”
U.S. President Donald Trump warned of “severe consequences” if Russia’s Vladimir Putin refuses to agree to peace in Ukraine, while suggesting a follow-up meeting could include Ukrainian President Volodymyr Zelenskyy.
The U.S. Department of Energy announced on Wednesday that the Trump administration has unveiled a nearly $1 billion funding plan to boost U.S. production of critical minerals and materials, aiming to reduce reliance on foreign suppliers, particularly China.
The Philippine government reported that a Chinese jet fighter intercepted a Philippine Coast Guard (PCG) aircraft with journalists onboard during a patrol over the Scarborough Shoal on 13 August, further straining tensions in the South China Sea.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment