Despite citing a third-quarter net income loss caused by higher income tax exposure and an appreciating U.S. dollar, Embraer CFO Jose Antonio De Almeida Filippo was confident that a seasonal increase in fourth-quarter deliveries will help the company to meet forecast performance this year. The company’s firm order book, which stands at a record $22.1 billion, up from $18.1 billion in the second quarter, lends credence to Filippo’s optimism. In the first nine months, revenues totaled $4.2 billion, a 7.9-percent year-over-year gain. However, overall revenue for the third quarter declined 3.8 percent from a year ago.
Embraer pegs the bulk of its revenues to the dollar, but costs are pegged to the Brazilian real. “We’ve had an 11-percent appreciation of the dollar to the real this quarter and that explains a lot,” Filippo said.
Deliveries of smaller jets on both the commercial and executive front also affected income. Fifteen Phenom light executive jets headed to customers in the third quarter versus 21 Phenoms and four Legacy/Lineage jets in the same period last year. The commercial jet division matched last year’s performance, delivering 19 E-jets.