Value Of Firm Order Backlog Climbs, Reaches $15.6 Billion

Embraer's final delivery statistics and order book shows that the Brazilian planemaker delivered 92 jets during the fourth quarter of 2010, 30 to the commercial aviation market, 61 to executive aviation, and one to the defense segment. On the year, the company delivered 246 jets, and reported a firm order backlog of $15.6 billion, which is 2% higher than the amount recorded on September 30, 2010.

Embraer Legacy 650

The last quarter of the year was marked by the certification and beginning of operations of a new Embraer executive jet. The large cabin Legacy 650 is based on the successful Legacy 600 platform. Its spacious and comfortable cabin can carry 14 passengers and is able to fly nonstop from Sao Paulo, Brazil, to Miami, Florida, in the U.S. Eight Legacy 600 and Legacy 650 jets were delivered from October to December. Also, production of the Phenom jets accelerated. In 2010, 100 were delivered, which is seven more than the previous year, besides 26 Phenom 300s. Embraer also announced an agreement with U.S.-based NetJets, which resulted in firm contract for the sale of 50 Phenom 300s, and another 75 options.

NetJets Phenom 300

The company says the commercial aviation market showed concrete signs of recovery throughout 2010, and gradually regained its business activity. Embraer sealed contracts for the sale of 97 new airplanes, which is very close to the 100 deliveries made.

In the fourth quarter of 2010:

• The Letters of Intent signed with Air Lease and Republic, of the U.S., which were announced at the Farnborough International Airshow, in July, resulted in 16 new firm orders for the EMBRAER 190. Another 44 airplanes from these agreements could be confirmed in the coming months;
• LAM, from Mozambique, confirmed the purchase of one more EMBRAER 190;
• Lufthansa, from Germany, bought eight more EMBRAER 195s (converting another two EMBRAER 190s, ordered previously, into EMBRAER 195s);
• CDB Leasing, from China, ordered ten EMBRAER 190s. This order was announced on January 10, but it is shown in the backlog of December 31 as "Undisclosed customer";
• One EMBRAER 190 jet was sold to an undisclosed customer;
• Two previously unnamed customers were announced – BA CityFlyer, from the United Kingdom, with two EMBRAER 190s, and Fuji Dream Airlines, from Japan, with one EMBRAER 175;
• The 700th E-Jet produced was delivered by Embraer in November and will be operated by BA CityFlyer;
• Five firm orders for the EMBRAER 190 by US Airways were cancelled.

Super Tucano

In the defense segment, Embraer announced the sixth agreement for establishing the industrial partnerships for the KC-390 program. Negotiations with the Argentine government could result in the sale of six more of the military transport planes, raising the total number of aircraft currently being negotiated to 60. The agreements between Brazil and Chile, Colombia, Portugal, and the Czech Republic were signed during the third quarter. The Company also concluded the first Super Tucano sale in Asia Pacific, after winning a bidding contest for supplying eight light attack aircraft to the Indonesian Air Force. Deliveries will begin in 2012.

FMI:  www.embraer.com