Alexandre Rocha
São Paulo – Brazilian aircraft maker Embraer had 15% lower revenues in 2003 than in 2002. Company net sales dropped from around US$ 2.526 billion to around US$ 2.143 billion. Despite the drop, the company has not gone into the red, and net incom was around US$ 136 million. However, the value is 39% lower than that registered in 2002, which was around US$ 222.6 million. The 2003 results were announced this morning (18) by company president Maurício Botelho.
The main cause for this drop in revenues was a reduction in the number of deliveries in 2003 against 2002. Last year, the company delivered 101 aircraft, against 131 in 2002, 161 in 2001, and 160 in 2000.
"In 2003 the aeronautical market continued in a crisis, still as a result of the terrorist attacks on September 11, 2001. The main airlines had losses. This picture was worsened by the SARS epidemic, which had strong effects on air transport in Asia and its connections with the West," justified Botelho.
At the beginning of 2003 Embraer hoped to deliver 148 aircraft. However, some deliveries have been advanced and there has also been a reduction in orders by two airlines, Express Jet (Continental Express) and Swiss. Certification (qualification for commercial use) of the Embraer 170, a new addition to the company family of regional jets, has also been delayed. Thus first deliveries, which had been scheduled for August, were postponed to November, but only took place at the beginning of this month.
With this picture in mind, Botelho thanked the Brazilian Development Bank (BNDES), which financed a "significant portion" of company export in 2003.
2004: optimism
Botelho, however, announced optimistic perspectives for 2004. He explained that, still last year, Embraer got financing of US$ 414.6 million on the foreign financial market to make the deal with Continental Airlines possible. In his evaluation, this shows that the market is starting to develop new interest in the sector, after a period of difficulty in obtaining foreign investment.
However, Botelho believes that the Embraer bet on the development of regional jets with a capacity for transport of between 30 and 110 passengers is going to pay off. According to the company president, the sector, which was responsible for the transport of only 10% of the US passengers 10 years ago, is currently responsible for the transport of 35%.
Embraer now hopes to deliver 160 aircraft in 2004 and 170 in 2005. Botelho stated his belief that there should be "constant" growth in revenues. The company now also has other jets in its product catalogue, the 170/190 families, with greater value than the ERJ 145, traded up to last year.
