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Inside Air Travel.

New York (AirGuide - Inside Air Travel) Thu, Dec 13, 2012

Embraer is close to meeting revenue and profitability targets for 2012 Brazil's Embraer is close to meeting revenue and profitability targets for this year, chief executive Frederico Fleury Curado said on Wednesday, an indication that robust military orders are offsetting a drop in demand for regional and executive jets. Defense, EmbraerOs fastest-growing segment, is likely to end the year with revenue above USD$1 billion, beating initial estimates of USD$950 million, Curado told reporters at a company event. The company, which is the world's largest manufacturer of regional aircraft, forecast net revenue of USD$5.8 billion to USD$6.2 billion this year. Curado's remarks highlight the growing importance of defense in Embraer's business model, which in the past year became less dependent on the sale of regional and executive jets. "Even slight" gains in revenue will be pursued next year, Curado said. Payroll, which contributed to a significant jump in costs in recent years, will likely remain stable in 2013, he added. A weaker exchange rate is helping dilute the cost of payroll - which is chiefly denominated in Brazilian reais - and enhancing Embraer's ability to remain profitable despite a crisis in global aviation. The company is aiming for earnings before interest, tax, depreciation and amortization - EBITDA - to equal between 12.5 percent and 13.5 percent of revenue this year. Paulo Cesar de Souza e Silva, who heads Embraer's commercial aviation unit, said at the event that terms of American Airlines' auction to buy 200 new regional planes should be announced in coming weeks. Embraer is in "preliminary talks" with American Airlines on that contract, Silva added. "Given the difficult situation in Europe, the focus in the commercial aviation market has swung back to the United States for new orders," he said. Silva said the he "sees" Embraer making a new jet with up to 150 seats around 2025, after re-engining current models. Thu, Dec 13, 2012 AirGuideOnline ISSN 1544-3760


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Publication:Airguide Online
Date:Dec 13, 2012
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