By Scott Kanowsky
Investing.com -- Ferrari NV (BIT:RACE) has announced new long-term plans to take advantage of the growing demand for electric vehicles.
In a statement ahead of the sports-car maker's Capital Markets Day, the company said it expects as much as 60% of its fleet of cars will be hybrid and fully electric in four years. Core earnings are now forecast at between €2.5 billion and €2.7 billion by 2026 with a margin of 38% to 40%.
"The plan privileges revenue over volume and entails strong mix/price contribution," Ferrari said in a statement.
Shareholders will also see dividend pay-outs increased to 35% from 30% from 2022 onwards, along with a four-year share buyback program worth about €2 billion.
The announcement comes as Ferrari chief executive Benedetto Vigna - who took over the helm of the company last September - attempts to shift the focus of the business away from traditional combustion engines in favor of electric mobility. Ferrari said it is taking "deliberate action" in the construction of its cars in a bid to achieve net-zero emissions by 2030, adding that it will begin installing photovoltaic solar panels and fuel cell-based systems. The company also confirmed plans to release its first totally electric vehicle in 2025.
However, the company expects 40% of its offerings will still have combustion engines by 2026 - including Ferrari's first-ever sport-utility vehicle, which it will unveil in September. Speaking after Ferrari's latest earnings in May, Vigna said its "Purosangue" SUV - which will be powered by a gas-guzzling V12 engine - was the "right option for the market."
Milan-listed shares of Ferrari were trading about 1.4% lower on Thursday.