Embraer increases by 5% its guidance for 2010 revenue
Financial results of 2nd quarter posted, with net cash at US$ 659 million
São José dos Campos, August 2010 – Embraer released its financial results, today, for the second quarter of 2010 (2Q10) in US GAAP. Net revenue was US$ 1.35 billion, and net profit totaled US$ 70.3 million. The operational cash generated – US$ 236 million – was one of the period’s highlights, contributing to the higher net cash position of US$ 659 million on June 30.
The recovery of the market seen since the beginning of the current year is showing good opportunities for Embraer, mainly in the commercial aviation business, some of which have resulted in new orders. As a consequence, the Company now expects annual revenue of US$ 5.25 billion, instead of US$ 5 billion; and operational margin of 6.5%, instead of 6%, for 2010.
During the past quarter, Embraer delivered 69 airplanes, 29 of which to the commercial aviation market and 40 to business aviation. In the same period of last year, a total of 56 aircraft were delivered – 35 commercial, 19 executive, and two for defense. The firm order backlog at the end of 2Q10 was US$ 15.2 billion, which is equivalent to three years of current
projected annual revenue.
Net revenue in the second quarter of 2009 was US$ 1.46 billion, and decreased 7.5%, mainly due to the mix of products delivered. The commercial aviation segment represented 61% of 2Q10 revenue, followed by executive aviation, with 14.4%, and defense, 13%.
On the other hand, net income increased 3.7%, compared to US$ 67.8 million for the same period of 2009. Furthermore, the strong operational cash generated indicates higher industrial efficiency. Net cash increased by 43.6%, from US$ 459 million in 2Q09 to US$ 659 million in 2Q10. The cash was generated mainly as a consequence of stronger operational financial results, together with reduced inventories and increased trade accounts payable.
The total loan position decreased from US$ 1.8 billion, in the previous quarter, to US$ 1.5 billion, on June 30. The average maturity of loans increased from 5 to 5.8 years. Altogether, these numbers show the Company’s good financial health, as do the results obtained by quality control and corporate management programs.
The complete report, with the financial statements and results of the second quarter 2010, is available at Embraer’s Investor Relations site (ri.embraer.com), and was filed with the U.S. Securities and Exchange Commission (SEC – www.sec.gov).
It should be noted that, as of the second quarter, Embraer’s financial statements in Brazil are being posted according to the International Financial Reporting Standard (IFRS). These rules were created to establish a common basis for comparing the company’s financial statements, worldwide. In its US GAAP statements, Embraer made comments and explanations to highlight the differences from the IFRS, which is the standard adopted by the European Union and other countries.
The recovery of the market seen since the beginning of the current year is showing good opportunities for Embraer, mainly in the commercial aviation business, some of which have resulted in new orders. As a consequence, the Company now expects annual revenue of US$ 5.25 billion, instead of US$ 5 billion; and operational margin of 6.5%, instead of 6%, for 2010.
During the past quarter, Embraer delivered 69 airplanes, 29 of which to the commercial aviation market and 40 to business aviation. In the same period of last year, a total of 56 aircraft were delivered – 35 commercial, 19 executive, and two for defense. The firm order backlog at the end of 2Q10 was US$ 15.2 billion, which is equivalent to three years of current
projected annual revenue.
Net revenue in the second quarter of 2009 was US$ 1.46 billion, and decreased 7.5%, mainly due to the mix of products delivered. The commercial aviation segment represented 61% of 2Q10 revenue, followed by executive aviation, with 14.4%, and defense, 13%.
On the other hand, net income increased 3.7%, compared to US$ 67.8 million for the same period of 2009. Furthermore, the strong operational cash generated indicates higher industrial efficiency. Net cash increased by 43.6%, from US$ 459 million in 2Q09 to US$ 659 million in 2Q10. The cash was generated mainly as a consequence of stronger operational financial results, together with reduced inventories and increased trade accounts payable.
The total loan position decreased from US$ 1.8 billion, in the previous quarter, to US$ 1.5 billion, on June 30. The average maturity of loans increased from 5 to 5.8 years. Altogether, these numbers show the Company’s good financial health, as do the results obtained by quality control and corporate management programs.
The complete report, with the financial statements and results of the second quarter 2010, is available at Embraer’s Investor Relations site (ri.embraer.com), and was filed with the U.S. Securities and Exchange Commission (SEC – www.sec.gov).
It should be noted that, as of the second quarter, Embraer’s financial statements in Brazil are being posted according to the International Financial Reporting Standard (IFRS). These rules were created to establish a common basis for comparing the company’s financial statements, worldwide. In its US GAAP statements, Embraer made comments and explanations to highlight the differences from the IFRS, which is the standard adopted by the European Union and other countries.
Source: EMBRAER
