Firm Order Backlog Rises To $16 Billion

Embraer showed some fairly strong results for the first quarter of 2011 (1Q11), delivering 20 jets to the commercial aviation market and eight to executive aviation. On March 31, 2011, the firm order backlog totaled $16 billion, an increase of $400 million over December 31, 2010.

The first three months of the year were marked by important Embraer sales to the commercial aviation market. In January, Dniproavia, from Ukraine, purchased ten Embraer 190 jets. In March, three customers made new E-Jets acquisitions: Brazil's TRIP chose four Embraer 190s, one of which was already included in the backlog of 4Q10 as an "undisclosed" customer; Italy's Alitalia took 15 Embraer 175s and five more Embraer 190s; and The Netherlands' KLM confirmed five options for the Embraer 190, announced in early April. In all, Embraer closed out the first quarter of the year with the sale of 44 new E-Jets.

Embrear E190

The second quarter began with the announcement of two new orders from China, indicating that the market continues its recovery in 2011. The orders by CBD Leasing and Hebei Airlines will be added to the backlog, as soon as all contractual provisos have been satisfied.

Furthermore, in March, the family of E-Jets operators welcomed Oman Air, from the Sultanate of Oman. On March 31, 2011.

Legacy 650

In the executive aviation segment, the Legacy 650 jet was certified in the United States, in February. That same month, Embraer began operations at the new industrial plant in Melbourne, Florida, in the United States, which will deliver Phenom jets to the North American market.

Embraer Defense and Security, which is the corporate unit established in December 2010, announced the purchase of 64.7% of the capital of the radar division of OrbiSat, in March. The R$ 28.5 million deal is an important strategic step for both companies and will strengthen the development and manufacture of monitoring and aerial defense systems on the international level. In 1Q11, Embraer Defense and Security also signed a contract with the Brazilian Air Force (Forca Aerea Brasileira – FAB) for the structural upgrading, and repair and substitution of equipment of 43 AMX fighter jets, thus complementing the modernization agreement signed in 2003, and presented the first EMB 145 AEW&C platform to the Indian government, which ordered three units to be used on surveillance missions.

 FMI: www.embraer.com