Lambo 2009 profit falls, but still in the black...barely.

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.

 

I find that very hard to believe, but I guess it is possible. But if sales are down 50% or so and they are still turning a profit they must have a very efficient business model, or shrewd asset management.

From Autocar - 7/31/09

 

Lamborghini's profits plunged in the first six months of 2009, but in contrast to many car manufacturers it is still making money. Lamborghini reported a first-half profit of $7.7 million, down from $49.8 million in the same period last year.

 

Those figures are the result of car sales that were down 37 per cent worldwide, at 825 cars, compared with 1309 in the first six months of 2008.

 

The markets showing the sharpest decline were the economies worst hit by the worldwide recession. Sales in the US were down 52 per cent, for instance, from 431 to 207 cars. Sales in Germany were down 52 per cent and in the UK they were down 46.6 per cent.

 

However, sales in some regions have held up: in Italy 122 cars were sold, in contrast to 130 in the same period last year. In the Middle East, which is the fourth-largest market in the world for Lamborghini, 61 cars were sold (79 last year). However, in China 29 cars were sold in the first six months of 2009, a growth of 32 per cent year on year.

 

"As was expected, we are not immune to the global recession," said Lamborghini president and CEO Stephan Winkelmann.

 

"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."

 

Winkelmann also reiterated Lamborghini's long-term strategy of announcing at least one new product a year.

I guess right now, it's 'steady as she goes'.

I guess right now, it's 'steady as she goes'.

Yes yes, steady as she goes into a ditch of quicksand.

 

Lamborghini will never be as successful as Ferrari by virtue of appearances. Simply stated, as long as the CEO is named Stephan Winklemann and not Francesco Romani, Luca di Monetezemolo will always have the last laugh.

 

Yes yes, steady as she goes into a ditch of quicksand.

 

Lamborghini will never be as successful as Ferrari by virtue of appearances. Simply stated, as long as the CEO is named Stephan Winklemann and not Francesco Romani, Luca di Montezemolo will always have the last laugh.

 

 

Lamborghini's CEO at one time was Italian....and I believe he was ex-Ferrari as well.

 

This was all circa 1998 or so.

 

 

From Autocar - 7/31/09

 

Winkelmann said: .... future ... and innovation alongside a firm ecological stance.".....

 

Does this mean more than 8-10mpg, and one of the worst gas mileage cars on the planet? What a bunch of BS this guy is spewing out.

....But if sales are down 50% or so and they are still turning a profit they must have a very efficient business model, or shrewd asset management.

 

Or huge cash reserves experiencing a huge burn rate right now....

 

Or they lie very well?

 

Which of the above do you think is the most likely scenario?

 

Either way, they will be just fine. No worry.

Does this mean more than 8-10mpg, and one of the worst gas mileage cars on the planet? What a bunch of BS this guy is spewing out.

 

True, but in fairness I think the SV or LP560 was the first new model to reduce carbon emissions over the previous version of an L-car. Typing it out I believe it was the 560, something like 10% more power with 20% less CO2 versus the previous car.

 

I found his insistance on keeping the "one new product per year" program more surprising, I'd have thought they'd have backed off that dealer-strangling pace by now.

Bentley and Seat, the only money losers in VW Group during first nine months

 

In the first nine months of the year, Volkswagen AG's Bentley and Seat units were the only money losers in VW Group. Despite boosting unit sales by 29.9%, the UK-based Bentley ultraluxury marque's operating loss was 145 million euros ($200 million). This was slightly lower than the 148 million recorded for the same period last year. Seat brand made a profit because the passenger car market had recovered, with unit sales rising by 10.6% to 260,000. This boost had aided in reducing the Spanish brand's operating loss to 218 million euros from 228 million euros.

 

Audi nearly doubled its operating profit to 2.3 billion euros, strengthened by a 13.6% rise in unit sales to 968,000. In a statement, VW said that the figures for the Lamborghini brand, which are included in the key figures for the Audi brand, also displayed “a positive development.” The core VW passenger car brand buoyed up unit sales by 11.8% to 2.8 million euros. Furthermore, its operating profit also improved to 1.6 billion euros from 300 million euros.

 

VW said that the growth had been influenced by demand for the Polo, New Beetle, Tiguan, Touareg, Jetta and Passat models. Skoda's operating profit increased to 314 million euros from 162 million euros, with unit sales increasing by 4.3% in the first three quarters to 426,000. The high demand for the Octavia, Superb and Yeti models was cited for having increased sales significantly.

 

http://www.4wheelsnews.com/bentley-and-sea...st-nine-months/

I find that very hard to believe, but I guess it is possible. But if sales are down 50% or so and they are still turning a profit they must have a very efficient business model, or shrewd asset management.

 

Exotics, like all luxury goods, have high gross profit margins, at most a G costs a few k more than a R8 to manufacture, yet it lists for 80k more. That may explain part of the profit, also it wouldn't surprise me if Lambo R&D and back office expenses are shifted/buried in the Audi account ledger.

 

The good news is that since Audi is sharing platforms with Lamborghini, making a fat buck on the Lambo side doesn't seem to be a priority.

It says positive developments, not profit. Being that the Lamborghini numbers are included in Audi's and not stated separately, I'd probably agree with Vroom and say that there is some accounting at work here. Financial reports shift stuff all over the place to paint better pictures of the same things. Who knows what costs got shoveled where. Does anyone have the actual report?

 

While 2010 has seen a huge improvement in demand for luxury goods, I see very few MY2010 cars other than the VB and 560 Spyders, but maybe that's different in the global markets.