Embraer Profits Up, Bizjet Programs on Track

 - August 5, 2008, 11:41 AM

Brazilian aircraft manufacturer Embraer on Friday announced second-quarter sales of $1.63 billion, up 43.7 percent from a year ago, and a profit of $134.4 million, a significant increase over the $31.2 million recorded for the same period last year. Embraer’s firm-order backlog as of June 30 reached a record high of $20.7 billion, $6 billion of which is for its Phenom, Legacy and Lineage executive jets. The company delivered 52 aircraft–nine super-midsize Legacy 600s, two ERJ 145 regional jets and 41 E-Jets–during the second quarter, compared with 36 in the same period last year. Embraer reaffirmed its estimate of delivering 195 to 200 jets this year (and expects deliveries to tend toward the higher figure), as well as 10 to 15 Phenom 100 very light jets. During an investor conference call on Friday morning, company president and CEO Frederico Curado characterized Embraer’s business aircraft backlog as strong, adding that he sees no erosion in business jet orders due to the slumping U.S. economy or higher fuel prices. Meanwhile, Curado said, the Phenom 100 remains on schedule to receive Brazilian certification next month or in October, “and the Lineage 1000 is on track for certification by year-end.”