Embraer announces US$341 million profit for 2010


Embraer yesterday announced a US$340 million profit for 2010 and a 29% increase in profit for the fourth quarter of last year.

Embraer is the world’s third largest commercial aircraft manufacturer and the largest regional jet manufacturer.

It said in a statement that it had posted profits of 600.2 million reals, or US$341 million, with a total benefit for shareholders of 573.6 million reals, or US$326 million.

Embraer delivered 101 commercial aircraft and 145 business aircraft during the last year, “exceeding annual delivery projections in all categories,” it said. In 2009 the Brazilian firm delivered 244 aircraft and posted a profit of $498 million. It forecasts deliveries of at least 220 aircraft this year, about 10 percent less than last year. Its firm order backlog as of December 31 was worth US$15.6 billion.

Last year Embraer’s net income was US$5.35 billion, with 54% coming from the commercial aircraft sector. The company is expects the defence market to drive its profits up this year as this is a segment that is beginning to lure potential clients.

The company said the devaluation of the US dollar against the real had hurt it but that 2010 had brought “concrete signs of recovery” following the global recession.
“We believe 2011 will be another important year for Embraer’s consolidation in the business aviation arena. We are excited about two important events that will take place in 2011: the delivery of the first Phenom 100 manufactured in Melbourne, Florida, in the United States, as well as the first flight of our brand-new midsize jet, the Legacy 500,” Executive Vice President of Executive Jets Luis Carlos Affonso said in a statement.

The aviation manufacturer expects a higher profit of $420 million this year and a net income of $5.6 billion, with US$3.1 billion coming from the commercial aviation segment, US$1.2 billion from the executive aviation segment, US$600 million from the defence and security segment, and US$700 million from aeronautical services and other businesses.

Embraer, led by Chief Executive Frederico Curado, earned US$122.7 million in the fourth quarter, compared with US$146.4 million a year earlier and US$98.5 million in the third quarter of 2010. Net income was expected at US$137.6 million, according to the average forecast of six analysts polled by Reuters.

Net sales for the fourth quarter increased to US$1.97 billion from US$1.63 billion in the same quarter last year, exceeding five Wall Street analysts’ estimate of US$1.90 billion.

Commercial sales for the fourth quarter increased to US$930.8 million from US$720.1 million in the previous year’s quarter, while sales from the defence and security segment totalled US$231.0 million, lower than $259.3 million in the same quarter the previous year.

Executive Aviation segment sales grew to US$632.9 million from US$417.3 million in the year-ago quarter, while sales from the Aviation Services segment totalled US$153.5 million, down from US$182.0 million in the previous year’s quarter.