Embraer Q3 Deliveries Down Across The Board
Brazilian aircraft maker Embraer on Wednesday reported a 23 percent drop in plane deliveries in the third quarter, underscoring still-sluggish demand from airlines and a slowing market for executive aviation.
The Sao Jose dos Campos, Brazil-based company, also the largest maker of regional aircraft, delivered 44 units in the July-September period, compared with 57 planes in the same period last year, and 69 in the second quarter, according to a statement.
Embraer's pipeline of firm orders dropped 18 percent to USD$15.3 billion on a year-on-year basis, but rose slightly from USD$15.2 billion in the second quarter. Orders fell significantly from about USD$20 billion in March 2009, as airlines remained hesitant over the strength of the global economic recovery.
The numbers indicate that chief executive Frederico Curado's strategy of increasing deliveries of executive jets suffered a setback as economies in the United States, Europe and Japan risk sliding into a double-dip recession.
Selling more of Embraer's smaller, yet pricier jets helped the company weather a decline in revenue and prevented profit margins from dropping further in the prior quarter.
Commercial aircraft deliveries reached 20, compared with 29 both a year earlier and in the second quarter. Executive jet deliveries fell to 24 units in the third quarter, compared with 27 a year ago and 40 in the second quarter.
The company delivered 154 planes during the first nine months of this year, one more than in the same period a year earlier.
Embraer had said previously that it aims to deliver at least 227 aircraft this year, compared with 243 in 2009.
According to Epstein, fourth-quarter deliveries are "typically stronger" than those in the third quarter and "we expect this trend to hold in 2010."