Embraer reports third quarter 2011
Executive Aviation delivers 18 aircraft in third quarter
In the third quarter 2011 Embraer Executive Aviation delivered
a total of 17 light jets and one large jet.
Third Quarter 2011 commercial and executive aircraft revenues reached US$1,363.6 million and gross margin
reached 21.2%, as a result of the mix in revenues and products. The firm order
backlog increased to US$16 billion, as a result of sales activities in 3Q11,
mainly in executive aviation.
Although the US
corporate profits indicator, which is an important market driver, has exceeded
pre 2009 recession levels, the used aircraft market (price and number of used
aircraft for sale) continues to offer some barriers to the executive aviation
Furthermore, as a result of the continued challenges observed
in the executive aviation segment, the company may not achieve its 2011
revenues projection for this segment. In spite of the current environment, the
company is net order positive as of 30 September 2011.
The highlight was the signing, at the beginning of October, of
an agreement for the purchase of 13 Legacy 650 jets by China’s Minsheng Financial Leasing as the first step to fulfill the Memorandum of Understanding (MoU) celebrated
in July for up to 20 aircraft.
The assembly of the Phenom 100 at Melbourne, Florida
progresses on schedule with the interior installation and painting of the first
Phenom 100, the wing mate of the second aircraft and the third aircraft
subassemblies already on site in the plant. First flight of US-assembled Phenom
100 is scheduled to occur later this year. The adjoining Embraer customer center
(ECC) has been completed and the Occupancy Certificate has been issued. The ECC
will be fully functional in December this year.
The Legacy 500 executive jet programme continues to evolve.
Three prototypes are currently in production. The wing and fuselage of the
first prototype has been mated and systems installation is underway. Landing
gear has been installed and electrical power in the aircraft has been turned
on. The assembly and installation of the vertical and horizontal stabilizers,
cabin door, rudder and elevator assemblies are being concluded. The second
prototype’s wing trailing edge and ot her structural components and systems are
being assembled and the first structural segments of the third prototype are
Embraer’s commitment to
world class customer support is highlighted by the Company’s expansion of its
network of service centers. In August, Embraer announced the appointment of
four new authorized service centers in Brazil
and an operational expansion plan of its factory-owned service center in Brazil,
including new services and certifications, a substantial increase in
maintenance equipment, and larger facilities. In the same month, the announcement
of a new service center in the Greater China region was made. In October it was
disclosed that four new Authorized Service Centers for the Phenom jets in North America will join the Company’s global network,
achieving more than 55 owned and authorized service centers.