Embraer announces 1Q16 results

Embraer has reported that in the first quarter of 2016 (1Q16), it delivered 21 commercial and 23 executive jets, an increase of 38% in total deliveries compared with 1Q15, creating a 1Q16 net income of $103.9 million.The adjusted net loss, which excludes non-cash deferred income taxes and social contribution largely related to the impact of foreign exchange variation on non-monetary assets, was a loss of $1.7 million in 1Q16.Embraer’s firm order backlog at the end of the quarter was $21.9 billion, compared with $20.4 billion at the end of 1Q15 and $22.5 billion in backlog at the end of 2015.The greater number of aircraft deliveries in both segments led to 1Q16 revenues of $1,309.0 million, an increase of 24% compared with 1Q15. EBIT and EBITDA margins were 6.5% and 12.8%, respectively, in 1Q16 (compared with 7.5% and 14.1% in 1Q15), with EBIT and EBITDA for the quarter being $85.7 million and $167.6 million, respectively (versus $79.6 million and $149.1 million in 1Q15.In 1Q16, Embraer invested a total of $111.2 million in product development, which was mostly offset by $98.9 million in contributions from suppliers. These supplier contributions are related to the development of the E-Jets E2 programme in the Commercial Aviation segment. As development investments are expected to ramp-up for the remainder of 2016, the company’s total development investment net of supplier contributions in 2016 should be in line with its $325 million outlook for the year.Regarding the E-Jets E2 development programme, Embraer has started the parts production process for the E195-E2, which will fly in 2017, with first deliveries expected to take place during the first half of 2019.In the segment of commercial jets with 70 to 130 seats, Embraer still claims leadership with more than 50% of the sales and 60% of the deliveries on the world market.

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