Embraer recorded net sales of $843.4 million, in the first quarter 2007 (1Q07) and net income of $26.2 million. The company cited supply chain difficulties for the ERJ 170/190 family, for delivering only 25 aircraft during the first quarter, down from 27 in the previous Q1, but said it was on track to deliver 165-170 E-Jets for the year now that it is producing the 190 wing. The company hired 2000 employees in January which negatively impacted its margins, the projection for which remains at 30 percent by year end. The hiring, with an additional 1500 later this year, will address the production ramp-up in the coming quarters with most of the new employees will be working a third shift, to be fully implemented during the third quarter of 2007. It also said the price of the Phenom is up 4.6 percent to take advantage of the elasticity in the market where demand remains very high despite long lead times.