Embraer reports lower commercial aircraft revenues

Embraer reported (31-Oct-2013) the following operational highlights for 3Q2013:

• Deliveries: Delivered 19 commercial aircraft. Embraer has delivered 58 commercial aircraft over the first nine months of 2013, compared to 83 in the first nine months of 2012. In Sep-2013, Embraer delivered the 1000th E-Jet, achieving the milestone in less than ten years of production;
• Orders: Firm order backlog grew to USD17.8 billion, reaching its highest level since the 3Q2009, mainly as a result of significant orders in the commercial aviation segment. ILFC ordered 50 firm E-Jets E2 orders, comprising 25 E190- E2s and 25 E195-E2s;
• Revenue: The lower commercial aviation deliveries in 3Q2013 compared to last year combined with a mix shift towards the smaller E-Jets E170 and E175 aircraft models led to a decline in revenues. The lower revenues and product mix shift in the quarter were the principal drivers of a decline in gross margin;
• Business segment contributions to revenue: The commercial aviation segment's proportion of total revenues was 53.4% in 3Q2013, down from 68.2% in 3Q2012. There was a higher participation of revenue contribution from the company's defense & security and executive aviation segments, which are expected to represent a larger portion of total Revenues in 2013 relative to 2012, in line with the company's guidance. [more - original PR]