Embraer’s order book contracts, shares drop – SHARE WRAP
Embraer reported its firm commercial order backlog stood at 393 as at 31-Mar-09 (valued at USD19.7 billion at list prices), down from 426 (valued at USD20.9 billion) at 31-Dec-08.
At the end of last year, the manufacturer reported total firm orders (over the history of its commercial programmes) stood at 1,791 aircraft. By the end of last month however, the figure was 1,790 – implying a reduction in its order book as airlines cancel orders amid the global economic recession. Furthermore, its options backlog has dropped from 860 at the end of 2008 to 842 as at 31-Mar-09.
Embraer’s shares fell 3.1% yesterday. UBS downgraded the stock to ‘Neutral’, recommending “a more cautious stance for now”.
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Selected Aviation suppliers daily share price movements (% change): 15-Apr-09