Lamborghini H1 profit up on sales, product mix
MILAN, July 25 (Reuters) - Italian luxury car maker Lamborghini said it lifted gross profit by nearly a third in the first half of the year, thanks to higher sales, better products and bigger margins.
It also reiterated its 2008 forecast for a 5 percent rise in unit sales. Chief Executive Stephan Winkelmann said the company had already surpassed its target of matching the 10 percent gross profit margin it achieved last year.
"We are at ... 12.6 percent," he told Reuters in a phone interview. "We are increasing (it) and we will see (how things go) at the end of the year.
"We are acting very conservatively," he added, referring to the forecasts. "We are always over-delivering and under-promising."
Lamborghini hit a record net profit last year after working to revitalise its brand, accelerating new model launches, widening its dealer and retail network and expanding licensing agreements.
Winkelmann's latest move was to have Italian fashion house Versace design the interior of a limited edition car and accompanying accessories like bags and gloves.
Winkelmann said he was in talks with two other designers for line of sports and outdoor clothes sporting Lamborghini's charging bull logo.
Another promotional stunt was to have its Murcielago LP640 driven by Christian Bale, the actor who stars as Bruce Wayne in "The Dark Knight", the latest instalment in the Batman film series by Warner Bros.
GALLARDO TOP SELLER
For the first half of the year, Lamborghini had a gross profit of 35 million euros ($54.76 million).
"(We are) approaching the region of the record-breaking profit figure for the entire financial year of 2007, which totalled 47.1 million euros," read a statement.
Turnover rose 9.6 percent to 277.4 million euros.
The number of cars built and sold during the period totalled 1,309 cars, 5.6 percent more than the same period last year.
The biggest seller was the Gallardo Spyder convertible, followed by the Superleggera, Winkelmann said.
"We are selling cars which have a higher turnover because the mix is getting better -- even the Superleggera, for example, which costs more than the normal coupe," he said.
On the market since 2006, the Gallardo Spyder reaches a top speed of 193 miles per hour (314 kph). Its price tag runs from $190,000 to $330,000.
Winklemann said he would not raise the price of the cars to cover the rise in the cost of raw materials. "We won't pass on our troubles directly to customers.
"Going into the luxury business even outside (of our core business) we still have space for improvement if the worldwide economic environment gets tougher," he said. "The luxury business is not immune to an economic slowdown."
Based in Sant'Agata Bolognese, Italy, Lamborghini is owned by Audi, the premium brand of the Volkswagen (VOWG.DE) group. (Editing by David Cowell)
