Embraer’s Profits Rise, but Bizjet Deliveries Dip
On Friday, Embraer reported a $98.5 million profit in the third quarter, up from $58 million a year ago, despite delivering 22 percent fewer aircraft. The São Paulo, Brazil-based company delivered 44 aircraft in the quarter (24 executive jets and 20 airliners), for a total of 154 aircraft shipped in the first nine months. Revenue fell 16 percent to $1.043 billion in the quarter from $1.246 billion a year earlier due to the lower aircraft shipments. Executive aircraft deliveries in the third quarter included 16 Phenom 100s, six Phenom 300s and two Lineage 1000s. In the same period last year, Embraer shipped 27 business jets–22 Phenom 100s and five Legacy 600s. The company has delivered only two Legacy 600s in the first nine months, all in the first quarter. Production shifted from the Legacy 600 to the recently certified 650 earlier this year, with deliveries of the new super-midsize jet due to commence in the fourth quarter. While Embraer noted, “2010 continues to be a year of slow recovery,” it did secure a purchase agreement last month with NetJets for 50 Phenom 300s and options on 75 more. This order is expected be added to the company’s backlog in January, “after certain precedent conditions are met,” Embraer said. Its firm order backlog as of September 30, including both executive jets and airliners, “remained stable” at $15.3 billion.