Despite the tepid global economy, it appears that rich folks are still buying expensive toys. Automobili Lamborghini's global sales and financial results for the first half of 2008 both hit record highs.
Revenues increased 9.6 percent to 277.4 million euros ($434.5 million) from 253.1 million euros. Pretax profit increased to 35 million euros ($54.8 million) from 26.4 million euros, a 32.6 percent increase. By contrast, Lamborghini earned 47.1 million euros ($73.7 million) for all of 2007.
Global unit sales increased to 1,309 vehicles from 1,238 for the same period last year. Lamborghini now has 114 dealers around the globe, up from 65 in 2004, with eight new stores opening in the first half of the year.
Lamborghini CEO Stephan Winkelmann said sales in the United States and Europe were stable, while the Middle East was up 40 percent. Strong gains were also posted in China and Hong Kong.
"There is no brand that is immune to financial crisis," Winkelmann said, "but we always produce less than demand. We are conservative in our forecast."
Winkelmann thinks second-half revenue and profits will be even better for Lamborghini, as the redesigned Gallardo LP560-4 has just started arriving in dealerships.
Winkelmann said an internal cost-reduction program has improved profits. Also, Lamborghini is pushing an accessories program for its cars, as pricey options such as $10,000 carbon ceramic brakes typically carry better profit margin percentages than the car itself.
"We are improving the assembly time," Winkelmann said. "We are constantly talking to suppliers to get a higher quality for a reduced price. What is helping us with suppliers is that we are constantly increasing volume."
No comments:
Post a Comment