Brazils Embraer Reports Drop in Profit on Demand Shift

Brazil's Embraer Reports Drop in Profit on Demand Shift

Embraer said it delivered a total of 19 commercial and 25 executive aircraft in the third quarter, for a cumulative total of 58 commercial and 66 executive jets for the first nine months of 2013.

SAO PAULO - Embraer (IW 1000/654) reported a 19% fall in third-quarter profit Thursday from a year ago, due to deliveries of less profitable jets.

Net income reached $52.9 million in the third quarter, down from $65 million during the same period of last year.

Net income was $5.3 million in the second quarter due to the depreciating real and reached an accumulated $77.5 million for the year.

Embraer said it delivered a total of 19 commercial and 25 executive aircraft in the third quarter, for a cumulative total of 58 commercial and 66 executive jets for the first nine months of 2013.

During the same period last year, a total of 83 commercial and 46 executive aircraft were delivered.

Third-quarter revenues totaled $1.28 billion, down 8.1% from the same period a year earlier.

Embraer attributed the decline in revenue to "lower commercial aviation deliveries in 3Q13 compared to last year, combined with a mix shift toward the smaller E-Jets E170 and E175 aircraft models."

"The lower revenues and product mix shift in the quarter were the principal drivers of a decline in gross margin to 19.2% in 3Q13 compared to the 25.2% reported in 3Q12," Embraer said.

Embraer is the world's third-largest commercial aircraft manufacturer, behind Boeing (IW 500/14) and Airbus (IW 1000/52).

Copyright Agence France-Presse, 2013

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