Ferrari N.V. (NYSE:RACE) Q2 2019 Earnings Conference Call - Final Transcript
Aug 02, 2019 • 09:00 am ET
Thank you so much. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] We will now begin the Q&A queue and the first question comes from the line of John Murphy from Bank of America. Please go ahead.
Good afternoon everybody and thanks for all the info here. The first question that I had is, as we think about mix, well it seems like the nadir on that is sometime right towards the end of the third quarter and the beginning of the fourth quarter as the Monza starts to hit as far as shipments. But then as we think about a little bit beyond that and think about 2020, you're also going to be getting the benefit of F8 and SF90 orders coming through as far as shipments kind of as you highlighted, those are record numbers relative to past vehicles.
So, as we think about this nadir at the end of the third quarter, beginning the fourth quarter for mix, we're also going to get sort of the benefit from volume next year. So, I'm just curious if there is anything wrong in sort of that thought process, and if we think about a 12-month run on the Monza being about 200, Monza it seems like we're going to get volume growth, plus those 200 Monzas next year. So, you should get at that nadir really good pick up in mix. Is that -- is there anything wrong with that logic?
Nothing. It's perfect logic that's exactly what we are shooting for in 2020. I mean clearly you get the Monzas and you get the SF90 kicking in for a big chunk of the year. So, obviously that will have a significant impact on margins. So, we do foresee an increase in margins in 2020, driven by essentially those two models.
And if we were to think about the Monzas, they would be worth in the ballpark on economics, about 3 to 4 of your "average vehicles", is that a fair way to think about the economics? Or is there something on the cost side, there were the margins might be slightly lower?
I don't want to get into that, John. Again, it depends what you're comparing it to, if you're comparing it to the SF90 or the Portofino. But clearly it is a very lucrative product with a very high margins.
And then a second question. If we think about mix and personalization -- sorry the FXX K I should say and personalization in the quarter, they were two levers that you seem to pull or maybe push to offset, what was negative mix and mix and price ended up being positive 5. I'm just curious how much if you could sort of delineate sort of those two relative to what was sort of an underlying negative mix, absent those and what kind of other levers that you have to pull over time with maybe more FXX Ks or maybe other specials because it seems