Lamborghini posts record profit for 2007

By Gilles Castonguay

MILAN (Reuters) - Lamborghini posted a record net profit of 10.1 million euros ($15.78 million) for 2007 on Tuesday, the result of its drive to become the most profitable luxury sport car maker.

A unit of Germany's Audi, it has boosted profit and sales by cutting costs, expanding its dealer network and signing licensing agreements for accessories sporting its logo of a charging bull.

It is also opening retail stores, much like its rival Ferrari of the Fiat (FIA.MI: Quote, Profile, Research) group.

Chief Executive Stephan Winkelmann reiterated his forecast of a 5 percent rise in unit sales this year.

"Production for this year has already been completely sold," he said in a statement distributed at a news conference.

In the first quarter, about 639 cars were sold, up 9.3 percent from the same period last year.

Winkelmann declined to provide a more detailed outlook, but said he wanted to keep the 10 percent gross profit margin that Lamborghini had reached for the first time in 2007.

By comparison, Ferrari's operating profit margin excluding extraordinary items stood at 15.9 percent in 2007.