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Lamborghini Profits Rise
Total turnover increased in challenging
economic conditions to Euro 478,8 Mio. (+2,5%)
- Profits rise to Euro 60 Mio. (+27,4%)
- Sales up: 2430 units sold worldwide (+1%)
- Strong growth in Middle Eastern and major Asian markets, strongest
growth in China
- Maintenance of long-term strategy and investments
In spite of world-wide financial and economic turmoil, Automobili
Lamborghini S.p.A. delivered another successful year in 2008. In all key
business indicators such as deliveries and profits, the Italian luxury
sportscar manufacturer exceeded the already remarkable previous year.
Turnover increased from Euro 467,1 Mio. to Euro 478,8 Mio in 2008 (+2,5%).
Pretax profits rose from Euro 47,1 Mio. to Euro 60,0 Mio, marking an
exponential increase of 27,4%. The profit margin increased from 10,1% to
12,5%. The brand with the raging bull logo improved sales from 2406 to 2430
units.
Commenting on the results, President and CEO of Automobili Lamborghini,
Stephan Winkelmann, said: “With this new record in deliveries and profits
we have marked the most successful fiscal year in the history of our
company. The worldwide economic climate, especially regarding luxury
markets, has changed dramatically. However, Lamborghini’s stronghold in
global presence and brand appeal will enable us to steer Lamborghini
through challenging times.”
On the sales side, weaknesses in major traditional regions were offset by
growth in other areas as well as in new and emerging markets. The US market
saw a decrease of 20,3% with 741 units sold compared to the 930 sold the
year before. The US share of world-wide sales decreased from 38,7% to
30,5%.
In Europe, sales remained stable. While traditional markets such as Germany
and the UK showed relatively small single digit decreases, sales in the
Italian brand’s homeland increased from 209 to 230 units (+10%). This sales
growth pushed Italy into the position of second largest world market.
Strong growth rates were achieved in the Middle East and Far East Asian
core markets. The Middle Eastern region – particularly the United Arab
Emirates – achieved a sales increase of 66% from 100 to 166 units sold. In
the Far East, China more than doubled its sales from 28 to 72 units sold.
The Middle East and Far East regions grew their contribution to
Lamborghini’s total worldwide sales from 15% to 21,8%.
The 2008 success in deliveries and profits was due to the consistent
expansion of brand presence and dealerships worldwide. More than that, the
marque has the most attractive model line-up ever, augmented by the launch
of the Lamborghini Gallardo LP 560-4 Coupé. Increasing brand and product
awareness as well as the innate and rising brand value are also key
factors in the company’s success.
The company´s development marks one of the most respected company
turn-around programmes in the automotive and luxury industries.
“In the light of world-wide economic uncertainties, this new record year
above all proves the sustainability of our business strategy. We know that
there are tough times ahead now, but we have increased the value and appeal
of our luxury brand and we are ready to take on the challenges the future
might bring us. We are confident we will come out of this challenge
stronger than we went into it,” said Lamborghini President and CEO Stephan
Winkelmann.
Outlook for 2009
Even as a low volume luxury car manufacturer, Automobili Lamborghini is not
unaffected by the present economic downturn in the wake of the global
financial crisis.
The goal is to lead the company through the difficult phase safely by
applying the strictest discipline to managing investments and current
costs, systematically adjusting production to reflect market developments.
Before approaching 2009, the company took decisive steps to be well
prepared for volatility in demand.
Production flexibility is made possible by working within contractual
agreements and with the full support of the trade unions. The company has
also enhanced and improved its professional training and qualifying courses
The company has announced short-time work for 300 of its 1000 employees in
some weeks from February to May and does not rule out making further use of
this tool.
Lamborghini remains with its long-term strategy. Investment into R&D will
continue. The company sticks to its commitment of 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 and the Murciélago
LP 670-4 Superveloce. The new Spyder is the convertible version of the
record-selling Gallardo LP 560-4 Coupé and is now being launched in all
markets. The Murciélago LP 670-4 SuperVeloce, recently presented at the
last Geneva motorshow, has already commanded a promising order bank and
will first reach markets in the next weeks.
In the current 2009 year, Automobili Lamborghini is not in a position to
make a full year forecast, but the overall target for the 2009 financial
year is to attain an overall profit.