Brazilian manufacturer Embraer has posted a fall in net profit for the 2009 fiscal year as a result of lower margins and a reduction in commercial aircraft deliveries.
Net profit for the year reached US$248.5m (A$269.7m), which was down 36 per cent, as earnings before interest and tax decreased by 37.5 per cent to US$335.6m (A$364.3m). Net sales were also down to US$5.47bn (A$5.94bn) from US$6.34bn (A$6.88bn) the previous year.
The company’s commercial aviation division was affected throughout the year by the global financial crisis, with a shortfall in deliveries of 40 aircraft compared with the previous year, which significantly impacted revenues. For the year, the company delivered 122 commercial aircraft, comprised of seven ERJ-145s, 22 E-170s, 11 E-175s, 62 E-190s and 20 E-195s, while it only took orders for 28 new aircraft.
By comparison, the company’s executive aviation business performed well in the circumstances, recording an increase in net sales revenue to US$874m (A$949m) as deliveries jumped from 36 in 2008 to 115. This was comprised of 93 Phenom 100s, one Phenom 300, 18 Legacy 600s and three Lineage 100s.
Despite the overall weak year, the company noted that there were indications during the fourth quarter that there may be a recovering market for both commercial and executive aircraft, and as such it was expecting to take more orders during 2010 which would push net sales to US$5bn (A$5.4bn).