Ferrari Sees '02 Sales Up 14%

MILAN March 4, 2003; Christopher Emsden writing for Dow Jones reported that Italian sports car maker Ferrari SpA will report 2002 sales of EUR1.28 billion, up 14% from the year before, Chairman Luca Cordero di Montezemolo said Tuesday.

Earnings will rise by around 12%, di Montezemolo said at the Geneva motor show, a Ferrari spokesman told Dow Jones Newswires.

Ferrari's board will post 2002 figures March 19.

Ferrari, 56%-owned by Fiat SpA , said it spent EUR265 million, or 21% of its revenue, on research and design last year.

No stock market listing is likely in the short term, di Montezemolo said, explaining that it would be "madness" to test current market conditions with an initial public offering.

But if conditions were "opportune," a listing could be held later this year, the spokesman said.

Last year, Fiat sold a 34% stake in Ferrari to Mediobanca SpA for EUR775 million, and has an option to buy the stake back later this year for a 4% premium.

Analysts have said that this implies a valuation of Ferrari which is more than 40% higher, on standard multiples, than the stock market capitalization of Porsche AG .

Fiat, which reported EUR4.3 billion in net losses for 2002, is understood to be considering ways to raise cash for its troubled core auto unit Fiat Auto. A further sale of a Ferrari stake is possible although Fiat is unlikely to relinquish control, according to people familiar with the matter.

Di Montezemolo was appointed director of Fiat last Friday.

Piero Ferrari, heir of the company's founder Enzo Ferrari, has a 10% stake in Ferrari.