Recovering from slowdown, Embraer delivers 32 jets in Q2

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Recovering from slowdown, Embraer delivers 32 jets in Q2

Robert Besser
29 Jul 2022, 02:52 GMT+10

  • Brazilian aircraft manufacturer Embraer SA said it delivered 32 jets in the second quarter, including 11 commercial aircraft and 21 executive jets
  • In a securities filing, the company said that as of the end of June, its firm’s order backlog hit $17.8 billion, up 12 percent from the same period last year and the highest level since 2018
  • While Brazil’s stock index Bovespa rose 1.3 percent, shares in Embraer were trading near flat at 11.88 Brazilian Reals in Sao Paulo

SAO PAULO, Brazil: Signaling an upturn after a slow first quarter, Brazilian aircraft manufacturer Embraer SA said it delivered 32 jets in the second quarter, including 11 commercial aircraft and 21 executive jets.

In a securities filing, the company said that as of the end of June, its firm’s order backlog hit $17.8 billion, up 12 percent from the same period last year and the highest level since 2018.

While Brazil’s stock index Bovespa rose 1.3 percent, shares in Embraer were trading near flat at 11.88 Brazilian Reals in Sao Paulo.

According to analysts at Itau BBA, while the company is still close to the bottom of its guidance for 2022, comprising 100 to 110 executive jets and 60 to 70 commercial jets, the results are in line with their expectations.

In a research note, they added that Embraer’s latest delivery figures showed “overall weak numbers, which we believe overshadows the news of the robust backlog,” as reported by Reuters.

Embraer said the current backlog did not include a new Porter Airlines order for 20 E195-E2 aircraft valued at $1.56 billion, showcased at the Farnborough Airshow last week, as well as an Alaska Air Group order of eight new E175 jets last week.

The latest figures showed deliveries increasing in pace from the first quarter, but falling just short of the 34 jets delivered in the same period last year.

In May, the company’s Chief Financial Officer, Antonio Carlos Garcia, said that while supply chain constraints remained an issue, it had already won enough orders to meet the top end of its targeted revenue range for this year.

Analysts at XP Investimentos, who forecast a total second quarter delivery of 29 aircraft, also expects business to improve later in the year, stating, “Deliveries should be more concentrated in the second half of 2022,” according to Reuters.

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