Embraer’s Profit Falls Sharply in 2Q
Embraer’s second-quarter profit fell considerably as the Brazilian manufacturer struggled to keep pace with its record backlog. Although the company kept an even keel by delivering 36 jets in the second quarter of this year, its profit (compared with the second quarter last year) tumbled 50 percent, to $67.3 million. This number was actually up, however, from the first quarter of this year, when the company recorded a profit of $26.2 million. Sales increased slightly to $1.1 billion. The executive jet segment continues to account for a minor portion of sales for the company, but the share has grown by leaps and bounds, likely thanks to the introduction of the Phenom 100 and 300. In the second quarter last year, Embraer sold almost $90 million worth of business jets, or about 9 percent of total sales. This year, that figure increased to almost $167 million, or 15 percent of the company’s total.