31/07/2009 Automobili Lamborghini maintains profitability and sustains strategic product and technological investments
- Profit before tax reaches 5.4 Million Euros
- First half financial year 2009: worldwide deliveries decrease by 37%
- Italy resists weakness of other key European Markets
- China with growing sales
- Maintenance of long-term strategy and investments
After several consecutive record years, Automobili Lamborghini S.p.A. reports a decrease in worldwide sales for the first six months of the financial year 2009 (which ends 31/12/2009). In spite of the massive economic downturn in Lamborghini´s major markets the company is still among the few car companies maintaining overall profitability.
In the first six months of 2009, turnover reached 156.9 Million Euros, with a decrease of 43.4% compared to the same period of 2008 (277.4 Million Euros). Pre-tax profit was 5.4 Million Euros in comparison to 35.0 Million Euros in the first six months of 2008.
In terms of sales, the company delivered 825 cars: a reduction of 37% compared to the same period of 2008 with sales of 1.309 cars.
As expected, the markets showing the sharpest decline are those economies worst hit by the deep worldwide recession. Consequently, Lamborghini sales volumes saw the most substantial downturn in the USA, falling by 52% from 431 to 207 units sold.
Some markets’ sales figures however, counteract the trend. In Europe, the second largest market, Italy, accounted for 122 units, nearly on a par with the first six months’ performance of 2008 when 130 Lamborghini cars were sold.
Switzerland maintained stability with 49 units sold, compared with 51 units in 2008. The same holds true for France with 37 units sold (43 in the first half of 2008).
Beyond Europe, there are clear signs of sales stability in the Middle East, which presently is the fourth largest market in the world for Lamborghini (61 units sold against 79 in the first half of 2008) and in China, which has achieved a sales growth of 32% (29 units sold in the first half of 2009 against 22 in the first six months of 2008).
Some major European markets showed decreases: Germany down 52.0%, and the UK down 46.6%.
The President and CEO of Automobili Lamborghini, Stephan Winkelmann, commented, “As was expected, we are not immune to the global recession. However, I am certain that Lamborghini’s strong global presence and brand appeal, which remains unaffected, will enable us to steer the company through challenging times to achieve new strengths. Our business strategy continues to be driven by two fundamental principles that allow us to react to the present economic situation and preserve the success of our brand. Firstly, we will maintain the profitability of the company, a target confirmed by the results of the first six months of 2009. Secondly we continue our investment into the future with product technology and innovation alongside a firm ecological stance.”
Lamborghini remains with its long-term strategy, with a commitment to announcing at least one new product each year.
The latest examples of this confidence are the launch of the new Lamborghini Gallardo LP 560-4 Spyder, the Murciélago LP 670-4 SuperVeloce, and the new Gallardo LP 550-2 Valentino Balboni: the first rear wheel drive Gallardo, celebrating the famous Lamborghini test driver, Valentino Balboni.
Investments into R&D and into reduction of CO2 emissions will continue as planned, resulting in continuing technology and product innovation. The company has recently announced its intention to complete its program of environmental sustainability in record time by presenting new plans which will enable Lamborghini to:
- achieve a 30% reduction, by the year 2010, in the CO2 emissions produced by its factory
- achieve a 35% reduction, by the year 2015, in the CO2 emissions produced by its vehicles
Lamborghini will commit 35 million Euros over the next five years for this purpose.
For the full year 2009, the company is not giving a definitive business forecast due to continuing market instabilities. However, Lamborghini is confident of also attaining a full year profit, thus remaining one of the few profitable companies in the industry.
