(Bloomberg) -- Ferrari NV’s shipments fell 2% in the third quarter, disappointing investors who were expecting the Italian luxury-car maker to show greater resilience against the industry’s recent weakness.
The drop was due mainly to a 29% deliveries slump in China, where Ferrari has a smaller presence than rivals such as Porsche AG.
Ferrari shares still fell as much as 7.2% in Milan, the steepest intraday decline since May 2021.
Manufacturers including Mercedes-Benz Group AG, BMW AG and Volkswagen AG’s Porsche are contending with waning sales in China, where a slowdown in demand for their top-end cars has contributed to a string of profit warnings. Earlier on Tuesday, German car parts maker Schaeffler AG said it will cut about 4,700 jobs and close two sites in response to the wider auto industry downturn.
To be sure, Ferrari is less exposed to China than other luxury carmakers. Its shares are still up by around a third this year, outperforming rivals that have seen more pronounced sales declines globally.
Ferrari’s third quarter was “solid rather than spectacular,” Citi analysts led by Harald Hendrikse said in a note, adding that revenue growth was a bit slower.
The manufacturer confirmed its full-year guidance and analysts said there’s no wider demand issue at the supercar maker.
Ferrari said third-quarter adjusted earnings before interest, taxes, depreciation and amortization rose 7% to €638 million ($695 million) — slightly ahead of analyst expectations.
Sales climbed 7% to €1.64 billion, as the company benefited from more buyers adding customizations to their cars, according to Chief Executive Officer Benedetto Vigna. He told analysts on a call that the order book in China stretches to around five quarters.
Ferrari’s results underline “our positive outlook for super-luxury cars, which remains intact despite deliveries being a touch light,” Bloomberg Intelligence analysts led by Michael Dean said Tuesday in a note. The analysts had said in August that the company is sold out until 2026.
Vigna is committed to keeping Ferrari’s product line exclusive, leaning on customization services to boost profit. Last month, the company unveiled a €3.6 million supercar that’s one of its most expensive models ever.
Vigna, a former executive at chipmaker STMicroelectronics NV, is pushing the company into producing more electrified vehicles. In September, he said Ferrari is on track to launch the brand’s first fully electric supercar in the fourth quarter of next year.
(Updates with shares in third paragraph and CEO call comment.)
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