Embraer reports 2Q income

Embraer reported second-quarter net income of $54.3 million on revenues of $1.7 billion, down from $204.7 million in net income in the prior-year period. The company said the profit decline was primarily due to the negative impact of deferred income taxes generated by the 11% appreciation of the US dollar against the Brazilian real, which cost the company $132.2 million.

Its commercial aviation segment generated 68.5% of total net revenues ($1.1 billion) against 15.5% input by defense and security and 15.2% by its executive aviation segment. In last year’s second quarter, commercial aviation generated $888.2 million, or 65.7% of total net revenues.

The company delivered eight E-175s, five E-195s and 22 E-190s in the quarter, totaling 35 commercial aircraft, up from 25 last year. The backlog comprises 1,058 firm orders and 596 options, with 858 deliveries to 60 airlines from 42 countries since its family of E-Jets took off in 2004.

Highlights of the period included the acquisition of five additional E-190s by China’s Hebei Airlines and the first E-190 deliveries to the Ukrainian Aviation Group Alliance, which will be operated by Dniproavia on behalf of AeroSvit.

The unaudited consolidated financial and operating statements, presented in accordance with IFRS, also show an accumulated delivery of 56 commercial aircraft for the first half of 2012, revenues totaling $2.8 billion in the period. Commercial aviation generated 67.4% of this total, or $1.9 billion.

Total debt as of June 30 increased by $167.6 million year-over-year to $2.1 billion, the result of a cash-intensive management strategy emphasizing working capital to support ongoing operations.

The company issued a total of $500 million in senior unsecured notes in June. Its total cash position at the end of the period grew by $156 million year-over-year. Embraer said it is “on track to meet 2012 projected deliveries and revenue guidance.”

 (Edvaldo Pereira Lima - ATWOnline News)