Wednesday, April 30, 2014
Embraer Triples 1Q Profit
[Aviation Today April 30, 2014] Brazilian airframe manufacturer Embraer reported net profit of $111 million for the first quarter of 2014, more than tripling its $30 million profits reported during the same period a year ago.
Embraer E 175 jet. Photo, courtesy of Embraer.
Embraer attributes the profit jump to increased orders within its commercial aviation segment, as well as revenue growth from its defense and executive jets segments. Defense revenue increased by 57 percent and sales of business jets climbed 53 percent compared to the first quarter of 2013.
The increased defense revenue is in line with the company's diversification strategy, as it looks to go beyond its traditional position in the global market for business jets.
During the quarter, the company delivered 14 commercial, 20 executive jets and spent $83 million in product development, mostly on its E-Jets E2 program. The Brazilian company expects to increase development investment for the remainder of the year, with a goal of reaching $320 million for the year.
Ahead of its first quarter earnings release, Embraer reported its forecast for the Middle Eastern and African market. According to the forecast, demand is projected to reach 530 new regional jets over the next 20 years.