Fall In Q4 Income Offset Productivity Gains

Brazilian planemaker Embraer announced Thursday the company took in over $6.3 million in net revenues for fiscal year 2008, a 20.8 percent increase over FY2007 figures... but sharp drops in the fourth quarter, due to the global economic recession, hit the planemaker's balance sheet hard.

Net revenues for Q4 08 totaled US $1.8 million, a 3 percent decrease from the same period in 2007. Yearly net income also decreased to US $388.7 million in 2008, down from $ 489.3 million in 2007, resulting in a 3.2 percent drop in net margins for the year. Those losses came despite a 43.5 percent gain in net income from Embraer's operations -- to $537 million -- for the year, thanks to productivity gains and financial contributions tied to certification of the Phenom 100.

The company's firm order backlog in December 2008 decreased 3.2 percent over September 30 levels, with cancellations due to the economic downturn taking a bigger bite from its order book than new sales and deliveries against posted orders. To put that in perspective, Embraer sold 11 new commercial jets in Q4 08... 101 fewer aircraft than during the same period in 2008.

In happier news, Embraer delivered 204 jets in 2008, its highest annual total to date. The company also asserted it remains liquid despite the declining market, with US $376 million in net cash on hand.

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