São Paulo – Embraer, the Brazilian aircraft maker, saw aircraft deliveries, revenue and net income increase year-on-year in quarter two. It announced its results this Friday (28), including 59 aircraft delivered – seven units more than in Q2 2016.
Total Q2 deliveries included 35 airliners and 24 business jets. In Q2 2016, Embraer had delivered 26 airliners and 26 business jets, meaning business jet deliveries in Q2 this year shrank by two units.
“We are still under major pressure, but we are seeing these markets improve, and do not expect prices to deteriorate,” CEO Paulo Cesar de Souza e Silva told investors at a conference regarding Embraer’s business jet division.
Embraer posted a net income of BRL 5.6 billion in Q2, up 19% from Q2 2016. Net income in US dollars also climbed, from USD 1.3 billion in Q2 2016 to USD 1.7 billion in Q2 2017.
Adjusted net income was BRL 398 million, up from BRL 155.6 million in Q2 of last year – a more than twofold increase. Adjusted net income in dollars climbed from USD 44 million to USD 123 million. The aircraft manufacturer has USD 650 million worth of investments planned for this year.
In a press release, Embraer ascribed the hike in revenue to the increase in commercial aircraft deliveries and a more favorable mix in business aviation, as well as the launch of Brazil’s Geostationary Satellite for Defense and Strategic Communications last May, under a partnership between the Brazilian government and Visiona, an Embraer-Telebras joint venture. The venture buoyed Embraer’s defense-related revenue.
During the conference, executives discussed Embraer’s participation in the Paris Air Show last June, where sales deals for as many as 51 were inked. At the show, Embraer introduced its KC-390 military transportation aircraft and its E195-2 and Legacy 450 models. It offered a tour of Europe, the Asia-Pacific, Africa and the Middle East on board the military unit. The executives were enthusiastic about people’s reactions to the new plane during the trip.
Embraer’s firm order backlog amounted to USD 18.5 billion at the end of June. The sum is down from USD 21.9 billion at the end of Q2 2016.
*Tradução de Gabriel Pomerancblum
