Ferretti Group reports first annual profit since 2008

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The Ferretti Group, announcing financial results for 2016 and the first quarter of this year, said it became profitable last year for the first time since 2008.

The group also announced the first elements of a two-year investment plan at a conference in Milan today.

The 2016 results registered a consolidated production value equal to 562.5 million euros ($597 million), demonstrating 36 percent growth from 414.8 million euros ($440 million) in 2015. The value is also higher than the one established at the beginning of 2016, at 556 million euros ($590 million).

EBITDA, already in positive territory in the first quarter of 2016, surpassed what Ferretti said was an important threshold of 50 million euros ($53 million) at the end of the year, reaching 52.7 million euros ($55.9 million), compared with 7 million euros ($7.4 million) the previous year.

Results after taxes turned from a 29 million-euro ($30.8 million) loss in 2015 to a 14.1 million-euro ($15 million) profit in 2016.

“In a three-year period Ferretti Group proved to be a company able to accomplish a real turnaround, obtaining great commercial success, which led to well-above-expected financial results,” Ferretti Group CEO Alberto Galassi said in a statement. “The new models have become the most important drivers of growth, thanks to their design, quality and high standards of innovation, which made them objects of desire since their debut.”

“I’m particularly proud to have led the group to double-digit net results: profit which the shareholders, Weichai Group and Mr. Piero Ferrari, who never stop supporting the group, have decided to wholly reinvest in the company,” Galassi said. “Moreover, today we are more than proud that the extraordinary success achieved by the group gave serenity to Carlo Riva’s last years.”

Galassi said Ferretti’s 2017 objectives are challenging, but possible, as the company relies on further investments, an efficient and well-performing organization and nine new products the group is set to present to the market.

Ferretti’s intake, which reached 401 million euros ($425.6 million) euros at the end of 2016, increased by more than 170 million euros ($180.4 million) in two years.

Ferretti also announced additional investments of 46.4 million euros ($49.3 million), of which 25 million euros ($26.5 million) are in research and development and 21.4 million euros ($22.7 million) will be directed toward the growth of production capacity.

The group said investments planned for the shipyards between the end of 2017 and 2018 could result in hiring 80 workers at all of its production sites — Lombardy, Liguria, Emilia Romagna and Marche.

The growth plan will be implemented only in case of a reduction in the company’s labor costs, which could be possible because of the application of new welfare regulations, which at the same time guarantee the increase of the employee’s purchasing power, Ferretti said in a statement.

“In order to reach this result, the collaboration of the trade unions is essential; thus, Ferretti Group intends to reach an agreement as soon as possible with the latter organizations,” the group said.

The hiring will in particular be at the Ancona shipyard, dedicated to the construction of maxi yachts in steel and aluminum of the CRN, Riva and Pershing brands, and those of Custom Line in fiberglass.

The construction of all Custom Line models will be moved to the group’s Superyacht Yard in Marche, where all of the group’s semidisplacement yachts are built, which enables the concentration in Ancona of the construction of maxi fiberglass planing yachts, as well.

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