Brazilian Aircraft Maker Embraer Up 32% in Net Revenues

Brazilian Embraer jet in US tour Brazil's aircraft maker Embraer posted growth of 32% in net revenues in the first quarter this year, compared with the same period last year. It totaled 2.3 billion reais (US$ 1.3 billion) whereas between January and March 2007 it was 1.7 billion reais (US$ 1 billion).

A press release issued by the Brazilian company explains that the growth happened as a result of the greater number of deliveries, of the mix of products delivered and of the reduction in the exchange rates.

The company's net profit reached 63.4 million reais (US$ 38.1 million), growth of 8.4%. During the same months in 2007, net profit was 58.5 million reais (US$ 35.2 million).

The company's firm order backlog closed the first quarter this year on a record high value of US$ 20.3 billion. The company explains that this is mostly due to orders for aircraft of the Embraer 170/190 family, for which there are 835 firm orders and 840 purchase options.

Embraer delivered 45 jets for business and executive aviation between January and March. The figure increased significantly in comparison with the same months of 2007, when 25 aircraft were delivered.

In 2008, the company intends to deliver from 195 to 200 aircraft, as well as 10 to 15 Phenom 100 jets, which should receive certification in the second half this year, according to company forecasts.

In the first quarter this year, Embraer was informed of firm orders to be placed by new customers, such as Air Moldova, from Moldavia, Jetscape, from the United States, and Azul Linhas Aéreas Brasileiras, a new Brazilian airline.

Companies that already operate with Embraer aircraft, Finnair, from Finland, and Lot Polish Airlines, from Poland, placed new orders as well. Options were also converted into firm orders by airlines Virgin Blue, from Australia, Egypt Air, from Egypt, and M1 Travel, from Switzerland.

The company's operational expenses totaled 301.3 million reais (US$ 181.3 million), growth of 3%. Commercial expenses rose 3.1%, closing at 165 million reais (US$ 99.3 million).

Management expenses saw a reduction of 2.1% and totaled 93 million reais (US$ 55.9 million). In March, the company should conclude the repurchase of 16,800,000 of its own shares, for an average price of 19.06 reais (US$ 11.47), representing disbursement of 302 million reais (US$ 181.7 million).

Embraer is a leading manufacturer of business jet aircraft with up to 120 seats, and one of the largest exporter companies in Brazil. It is headquartered in the city of São José dos Campos, in the interior of the state of São Paulo (Southeast Brazil), and owns offices and operations in the United States, France, Portugal, China and Singapore, as well as Brazil. By late March, the company had 23,878 employees.

Anba

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