Embraer projects 10% increase in revenue for 2016

Embraer released (03-Mar-2016) its outlook for 2016:

Financial guidance:

• Revenue: USD6-6.4 billion (2015: USD5.9 billion);
• • Commercial aviation: USD3.45-3.65 billion;
  • Executive jets USD1.75-1.90 billion;
  • Defense & security USD700-750 million;
  • Others: USD100 million;
• EBIT: USD480-545 million (2015: USD331.5 million);
• • EBIT margin: 8-8.5% (2015: 5.6%);
• EBITDA: USD800-870 million (2015: USD829.6 million);
• • EBITDA margin: 13.3-13.7% (2015: 12.8%);
• Research: USD50 million;
• Development: USD325 million;
• Capital expenditure: USD275 million;
• Total investments: USD650 million;
• Free cash flow: Greater than -USD100 million.

Operational guidance:

• Embraer expects higher deliveries with good production visibility for 2016 in the commercial aviation segment. Similar mix of deliveries as compared to 2015, with an overall higher number of deliveries. Deliveries of the E175 jet model are likely to continue to represent the majority of the segment's deliveries;
• Conditions in the executive jet market remain challenging, as the level of pre-owned aircraft for sale continues to pressure new aircraft demand. Recently, weakness in emerging markets has affected the industry, though the US market continues to gradually improve from its post-crisis levels;
• Embraer expects to deliver 105 to 110 commercial jets, 75 to 85 light executive jets and 40 to 50 large executive jets (including Legacy 500 and Legacy 450 deliveries in 2016;
• Approximate revenue contribution from each business segment for 2016:
• • 57% from commercial aviation;
  • 30% from executive jets;
  • 12% from defence & security;
  • 2% from other businesses. [more - original PR]