Lamborghini's half-year operating profit dips amid currency headwinds
Operating income stood at €431m (R8,904,511,720) from January to June versus €458m (R9,462,934,940) a year before, primarily due to unfavourable exchange rate trends in the second quarter, the company said.
"The results are solid despite global economic and political instability," CEO Stephan Winkelmann said.
Net revenues amounted to €1.62bn (R33,471,516,600) in the time as the carmaker, part of Germany's Volkswagen, delivered 5,681 cars, its highest amount ever for a first half.
Its operating profit margin fell to 26.6% from 28.3% a year before.
Winkelmann said the results confirmed a decision to make all Lamborghini's range hybrid was right, as shown by the success of the Revuelto sportscar, its first plug-in hybrid, launched in 2023, and of the Urus SE SUV.
"Our vision is shared by our customers," he said.
"We look forward to the market launch of the Temerario, which will complete the first fully hybrid range in the segment".
Lamborghini, based near Bologna in northern Italy, did not make any reference to Sunday's EU-US framework trade deal, which imposed a 15% US import tariff on most EU goods, despite the Americas region accounting for around 30% of its deliveries in the first half, or 1,732 cars.
The Europe, Middle East and Africa region led deliveries in that time with 2,708 units, while Asia Pacific accounted for 1,241 units.
Earlier this year Winkelmann said US tariffs would have an impact on Lamborghini's revenue even though luxury product makers can pass on potential tariffs to customers as there was a "sweet point" beyond which "you lose volumes".
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
4 hours ago
- The Citizen
Groenkloof community revives opposition to mixed-use project near rugby grounds
Groenkloof residents are voicing strong opposition to a proposed development on municipal land next to the historic Harlequins Rugby Club. The land, valued at R33-million, has become the centre of controversy following an announcement by the metro that it intends to lease it for a private mixed-use development. While no final decision has been made, the metro has begun a public participation process that could see the land put out on tender if the council gives the go-ahead. Community member and local representative Yvette Loots said the proposal feels like a revival of a plan introduced just before the COVID-19 pandemic. She said at the time, a private developer proposed a precinct similar to Loftus Park, with restaurants, office spaces, and medical suites. According to Loots, the Groenkloof community opposed the plan so firmly that the developer eventually withdrew. 'We thought it was over and done with, but now the city has come back with essentially the same idea. 'They're asking how we feel about it, but it feels like they're already laying the groundwork to put the land out to tender.' Loots explained that community objections go beyond sentiment. She said the neighbourhood is already under pressure from traffic congestion, infrastructure limitations, and increased usage of nearby facilities like Crawford College and Life Groenkloof Hospital. 'Totius Street is a narrow two-lane road with no shoulders, and the traffic on Saturdays from school sports and hospital activity is already a nightmare.' Loots said adding a three-storey hotel and entertainment space will break the system. According to Loots, the land could be better used for recreation and sports, particularly as there is a shortage of rugby fields in the area. 'Harlequins and Pretoria Rugby Club are both right here, and they're struggling with space. Right now, Boys High and Sutherland are renting Harlequins' fields because there just aren't enough rugby grounds in the area. 'The club wants to develop an additional field on the land, which makes far more sense than putting up another business complex.' Loots said the community came together earlier this year, including residents from both Groenkloof and the north side of Totius Street, to formally register their objections. She added that everyone agreed to object, but the metro doesn't seem to give much weight to group objections anymore. 'They prefer individual objections, so now everyone is submitting their concerns one by one.' Metro spokesperson Selby Bokaba confirmed that no resolution has been passed by the council to lease the property. 'Council has only approved the initiation of a public participation process in terms of Regulation 35 of the Municipal Asset Transfer Regulations.' He said the metro will compile a report incorporating public input to be submitted to the council for a final decision. Bokaba added that the development under consideration is a mixed-use project, which combines residential, commercial, institutional, and possibly light industrial elements. He noted that the property currently has split zoning for public open space, railway, and existing streets as defined in the 2024 Tshwane Land-Use Management Scheme. 'For development to proceed, appropriate land-use rights, township establishment, and subdivision would all be required following council approval.' Bokaba emphasised that the metro views the land as underutilised. 'The property in question is currently being used only in part by the rugby club. 'Revenue generation is essential for the metro to fulfil its service delivery mandate, and the group property department is mandated to support this objective.' When asked about the feedback received so far, Bokaba said public participation meetings were held onsite and online in June, with notices also published in local newspapers. The metro is now consolidating all submissions, which will be compiled into a report for the council. 'All objections submitted were acknowledged. Equal standing and equal weight are afforded to all objections, regardless of the source.' In response to claims that Harlequins Rugby Club had expressed interest in expanding onto the land, Bokaba said the metro had not been formally made aware of this. He added that the club had previously approached the metro with a request to commercialise a portion of the property it already leases. 'However, it withdrew when it became clear the club would have to relinquish its rights and the developer would have to lease directly from the municipality.' Bokaba said on the issue of traffic and infrastructure, all lease proposals are referred to the relevant internal stakeholders, including the Roads and Transport Department. 'No objections were raised at that stage. However, the metro's group property department has recorded community concerns and will reengage with its roads and transport department for detailed input.' He said the metro may recommend upgrades to infrastructure, depending on the feedback from relevant departments. Bokaba added that the cost of any required infrastructure upgrades would be accepted by the potential lessee, with implementation monitored and approved by the metro. He also clarified that the current process does not involve the sale of the land. 'It is a lease proposal. Based on public input, the metro may recommend that any approved development must include recreational components.' He said the metro remains open to leasing land to community or sports organisations, but is limited by two laws that limit the maximum lease for sports clubs to nine years and 11 months. Do you have more information about the story? Please send us an email to [email protected] or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok.
IOL News
6 hours ago
- IOL News
Solar Power in SA: Understanding the confusion, costs, and compliance for homeowners
We break down what the tariff changes mean for solar power users. Image: Freepik As more South Africans turn to solar panels to avoid electricity woes, many homeowners find themselves having to navigate complicated regulations, registration demands, and rising costs. Like financial independence, the promise of energy independence is appealing and a dream for many, but the reality involves compliance, financial implications, and differing rules from Eskom and local municipalities. We break down what all of it entails. How does registration work? Both the national power utility Eskom and municipal distributors like Johannesburg's City Power require the registration of small-scale embedded generation (SSEG) systems, such as rooftop solar photovoltaic (PV) installations. City Power's approach is actively registering these systems, and their meter readers are noting the presence of solar panels during standard meter audits. While registration is not yet being enforced, customers are urged to do so voluntarily to comply with National Energy Regulator of SA (Nersa) regulations. The utility is developing methods to identify unregistered systems in the future. This may include the possible use of satellite and drone-based detection. City Power emphasises that even small systems can pose risks like backfeeding, phase imbalances, or grid disturbances if not properly registered and integrated into the network. Now let's take a look at Eskom's campaign. Eskom launched a campaign in April 2025 to help residential owners in Eskom-supplied areas register their systems. For installations up to 50kVA (which covers most residential PV systems), Eskom has waived registration fees, installation costs, and the expense of a smart bi-directional meter until March 2026. This exemption could save households up to R9,132. Registered customers will be converted to the Homeflex tariff, allowing them to benefit from credits for exporting surplus energy to the grid. It's important to note that if your solar system is completely off-grid and has no connection to Eskom's network, you are not required to register. What are the challenges? Despite Eskom's efforts to simplify registration, organisations like the Organisation Undoing Tax Abuse (Outa) and AfriForum have challenged the legal basis of Eskom's registration requirements. AfriForum argued that Eskom cannot "threaten or force people to register their systems through statutory requirements, nor fine them". They also express concern that Eskom might be seeking data for future solar tariffs. Eskom's requirement for a registered electrical engineer or technologist to sign off on the system's safe integration has caused controversy. AfriForum contends that this is not a prescribed Nersa requirement and that the enforceable National Rational Standards primarily call for an accredited technician to sign off. This requirement, they warn, could create a big bottleneck in registrations due to a limited number of available electrical engineers across the country. The process for City Power customers requires submitting documentation, including a certificate of compliance, a single-line diagram, and an electricity supply application form. Once this has been approved, a smart bi-directional meter may be installed to track both consumption and feedback. Breaking down the costs In conjunction with registration and other expenses that may arise, solar power users connected to the grid are facing significantly higher electricity bills due to Eskom's new retail tariff plan (RTP), implemented on April 1, 2025. This plan shifts more of Eskom's cost recovery to fixed components, such as capacity charges, rather than variable consumption-based charges. For Eskom's most common residential tariff plans (Homepower 4 and Homeflex 4), the fixed charge increased by 88%, from R192.90 to R362.70, which customers pay before consuming any electricity. This change means that even households generating a large portion of their own electricity from solar are paying substantially more. For example, a small household using 450kWh per month but only drawing 90kWh from the grid could see its utility bill increase by over 51%. Large households are experiencing increases of over 36%. Eskom argues these fixed fees ensure all users contribute equally to grid maintenance. The impact of these fixed charges varies significantly by municipality. For instance, a household in City of Tshwane with the same entry-level solar system would pay less than half of what an Eskom Direct customer pays for the same amount of grid electricity. While some major municipalities have increased fixed charges, none have done so as drastically as Eskom. Adding to the confusion is the fact that each of South Africa's 177 municipalities that sell power has its own unique rules for connecting solar systems. The cost of compliance also varies. For Eskom, potential costs can include an administration fee (R2,500), meter change (R6,000 upwards), and, if required, R4,500 for line diagrams and engineer sign-off. IOL
The South African
19 hours ago
- The South African
EU-US trade deal slaps EU exports with shocking 15% tariffs
The European Union (EU) and the United States (US) finalised a major trade agreement on 28 July 2025. The deal introduces a 15% tariff on most EU exports to the U.S. market. This tariff is a significant increase for most goods in key sectors like automotive and machinery. Additionally, it mitigates the threat of a much steeper 30% tariff in early August. European Commission President Ursula von der Leyen said the agreement brings 'stability and predictability' for EU exporters. She acknowledged that while a 15% tariff is significant, it reflects the best result under current geopolitical tensions. Her remarks followed weeks of intense negotiations between EU and U.S. trade officials. Before the deal, U.S. tariffs on EU exports averaged around 2%, varying by sector, according to World Trade Organisation (WTO) data. However, the new flat rate was considered a compromise to prevent an escalating trade war. Markets responded quickly. Despite short-term volatility, analysts suggest the deal may offer longer-term stability. Still, some industries fear the tariff burden will weaken EU competitiveness globally. Others argue that the agreement creates a predictable baseline for future transatlantic trade talks. On 31 July 2025, President Trump announced a 39% import tariff on Swiss goods, effective 7 August 2025. This tariff will directly impact Swiss luxury brands like Swatch and Richemont, leading to higher costs and weakening demand. Pharmaceutical companies Novartis and Roche will also face increased pressure to reduce drug prices in the U.S. Following the announcement, the Swiss franc weakened against the U.S. dollar, and major Swiss stock indices opened lower. Meanwhile, the Swiss-American Chamber of Commerce called the tariff move 'disappointing' but expressed hope for a future resolution. The euro did not appreciate against the US dollar in July 2025. The exchange rate showed a slight depreciation. The euro began the month with a high of approximately $1.1810 on 1 July 2025 and ended the month at around $1.15788, with an average rate for the month of approximately $1.15863. The South African Rand (ZAR) equivalent of these values is not included as exchange rates fluctuate daily. The S&P 500 did not lose ground in the days following a major deal. The S&P 500 showed strong performance throughout July, rising by 2.2% over the month and posting its third consecutive month of gains. While there was some volatility and a slight downturn at the very end of the month, the overall trend was positive, driven by strong corporate earnings, particularly in the technology sector, and a generally improved economic outlook. The EU and US did reach a trade agreement in late July 2025. The EU made political commitments to invest $600 billion (R11.4 trillion) in the United States by 2028 and to purchase $750 billion (R14.25 trillion) worth of American energy products through 2028, with the specific intent of reducing dependency on Russian energy supplies. These figures represent political agreements and anticipated private-sector involvement, not legally binding contracts. Yields on European government bonds did not decline following the trade deal. Throughout July 2025, eurozone government bond yields, including the German 10-year bund, generally drifted higher. This spike was attributed to a broadly positive growth sentiment in the Eurozone and an improving economic outlook. This rally occurred despite the European Central Bank (ECB) keeping interest rates stable in July. German Chancellor Friedrich Merz welcomed the trade deal, stating that it prevented a 'needless escalation' in transatlantic trade relations. However, German industry groups, such as the German Association of the Automotive Industry (VDA), expressed concern that the 15% tariff would harm Germany's export economy, costing the industry billions annually. Hungarian Prime Minister Viktor Orban criticised von der Leyen, calling the deal 'worse than the UK's'. French Prime Minister Francois Bayrou labelled it a 'dark day' for EU sovereignty. Analysts warn the bloc may face lasting reputational and economic damage from the concessions. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 11. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
