Embraer May Deliver as Many as 110 Commercial Jets in 2012
Embraer SA (EMBR3), the world’s fourth- biggest airplane maker, aims to increase commercial and business jet deliveries this year and reach as much as $6.2 billion in revenue amid global economic growth.
The Sao Jose dos Campos, Brazil-based company plans to deliver 105 to 110 commercial jets and 90 to 105 executive planes, compared with 105 commercial and 99 executive aircraft in 2011, according to a regulatory filing today. Embraer said it expects revenue of $5.8 billion to $6.2 billion for 2012.
“Macroeconomic expectations are that the global economy will continue to grow at a more moderate pace,” Embraer said in the statement today. “Order activity in commercial aviation is expected to be similar to 2011, supporting a stable book to bill for the year.”
A recovery hasn’t gotten under way in the executive aviation market, according to the statement.
Embraer, said it earmarked $650 million for investments this year, including $350 million for product development. Last year, the company said it won’t develop a new, bigger commercial jet to compete with Boeing Co.’s new 737MAX and Airbus SAS’s A320neo, and instead will work to upgrade planes from its E-Jets family with new engines and wings by 2018.
Embraer’s earnings before interest, taxes, depreciation and amortization, or Ebitda, will equal 11.5 percent to 12.5 percent of revenue this year, according to the guidance statement.
Embraer fell 0.7 percent to 12.02 reais ($7) at the close in Sao Paulo.
To contact the reporter on this story: Jose Sergio Osse in Sao Paulo at josse1@bloomberg.net
To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net
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