Embraer Posts Record in 2007

Embraer expects to deliver between 195 and 200 aircraft, in 2008, in the Commercial Aviation, Executive Aviation, and Defense and Government segments, plus another 10 to 15 Phenom 100 jets. Deliveries would best the 169 aircraft the company delivered during 2007, when production problems forced a reduction...

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Embraer expects to deliver between 195 and 200 aircraft, in 2008, in the Commercial Aviation, Executive Aviation, and Defense and Government segments, plus another 10 to 15 Phenom 100 jets. Deliveries would best the 169 aircraft the company delivered during 2007, when production problems forced a reduction in deliveries. Embraer, which set a backlog record in 2007, also estimates delivery of 195 to 200 aircraft to the same segments, in 2009, and another 120 to 150 Phenom 100 and Phenom 300 jets.
Even as it opened 2008 by placing an ERJ 145 with Petroecuador, Empresa Estatal Petroleos del Ecuador, Embraer announced it met expectations to deliver 165 to 170 aircraft in 2007. The company delivered 61 jets to the Commercial Aviation, Executive Aviation, and Defense and Government segments during the fourth quarter of 2007 (4Q07), recorded the largest annual airplane delivery figure in its history at 169 jets, and achieved a new record of $18.8 billion for its firm order backlog, on December 31, 2007.
The Petroecuador aircraft was part of that backlog, with delivery of the 50-seat jet scheduled for the second half of 2008. The contract also includes a significant logistical package for replacement parts, technical support and crew training. Petroecuador is a state-owned resource development company. The aircraft will operate from Quito to the Lago Agrio and El Coca airports, in Ecuador’s Amazon region. Petroecuador expects to transport about 50,000 employees per year between the company’s main office and its branches.

2007 Results
During 2007, the company increased production, hired new employees and implemented a third shift as well as adopted a lean manufacturing concept which led to the 30 percent increase in the number of deliveries over the previous year.
Embraer delivered 45 jets to the Commercial Aviation segment, 14 Legacy 600s to the Executive Aviation segment and two jets to the Defense and Government segment during the 4Q07.

Embraer increased the number of customers in its firm order backlog for the ERJ 170/190 jets family in the last quarter of 2007, with the sale of two ERJ 170s to Suzuyo, from Japan, 16 ERJ 190s to El Savador’s TACA, five to NAS Air, from Saudi Arabia, and 10 jets to Virgin Nigeria, where seven orders are for ERJ 170s and three for ERJ 190s. Also in the Commercial Aviation segment, Republic Airways Holdings confirmed 11 options for ERJ 175 jets.
In the Executive Aviation segment, a number of firm orders were taken for jets from the Phenom family, bringing the total aircraft sold to over 700. During the same period, the Defense and Government segment signed contracts with the Royal Thai Army and the Royal Thai Navy for the sale of two ERJ 135 jets.
Deliveries and firm order backlog include orders for the Defense and Government segment placed by State-run airlines (Satena and TAME). On December 31, 2007, Embraer's order book for the Commercial Aviation segment, by product, stood at:

The 4Q07 was also highlighted by Embraer's participation in the Dubai AirShow 2007, which yielded $1.1 billion in firm orders, and by the delivery of the 300th aircraft of the ERJ 170/190 family of jets to Northwest Airlines, which operates the ERJ 175 aircraft through its regional subsidiary Compass Airlines, under the Northwest Airlink brand name.