Embraer recorded fourth quarter 2008 (4Q08) net sales of $1,818.4 million and net sales for fiscal year 2008 (FY2008) of $6,335.2 million. Net income for 4Q08 and for the full year totalled $111.7 million and $388.7 million respectively.
During 4Q08, Embraer added 11 E-Jet firm orders – from British Airways for six E-170s and five E-190s. The company delivered the first E-190s to KLM Cityhopper and first E-195 to Azul Linhas Aéreas. Régional received the 500th E-Jet in the last quarter of 2008.
The firm order backlog on 31 December 2008 decreased 3.2%, compared with the end of 3Q08 on 30 September 2008, and reached $20.9 billion. Embraer sold 11 E-Jets during 4Q08, compared to 112 new sales for FY2008. The E-Jet firm order backlog accumulated a total of 876 firm orders and 810 options.
In 4Q08, Embraer delivered 59 jets in the Commercial Aviation, Executive Aviation, and Defense and Government segments. Total deliveries in 2008 were 204 jets, the highest for a year in the company’s history, and consistent with the planned Embraer’s delivery schedule.
Net revenues for 4Q08 totalled $1,818.4 million, or a 3% decrease, compared to $1,875 million for 4Q07. For FY2008, net revenues were $6,335.2 million – a 20.8% increase over FY2007 net revenues of $5,245.2 million.
The gross margin for 4Q08 was 20.8%, a decrease from the 22.6% in 4Q07. For FY2008, Embraer reported a gross margin of 21.2%, down 0.8 percentage points (pp) compared to the 22.0% reported for FY2007.
Income from operations reached $274.6 million in 4Q08, 66.1% above the $165.3 million recorded for the same period last year. In FY2008, income from operations was $537.1 million, an increase of 43.5% over the $374.2 million of FY2007, mainly due to the productivity gains achieved during the year, combined with the recognition of approximately $80 million in contributions from suppliers, due to the certification of the Phenom 100 entry level business jet.
Net income decreased from $200.9 million in 4Q07, to $111.7 million in 4Q08, with the net margin being 10.7% and 6.1%, respectively. Net income also decreased, to $388.7 million, in 2008 from $489.3 million in 2007, and net margins decreased to 6.1% from 9.3%, respectively.
For the year ended 31 December 2008, Embraer maintained its high level of liquidity. Its total cash position, at the end of 2008, was $2,201.5 million. Deducting the total indebtedness of $1,825.4 million, at the end of 2008, the net cash position on 31 December 2008, was $376.1 million.
In 4Q08, net revenues for the Commercial Aviation segment totalled $1,190.2 million, representing 65.4% of net revenues for the period, compared to $1,156.8 million and 61.7%, respectively, in 4Q07. In 2008, net sales for the Commercial Aviation segment reached $4,239.3 million, representing 66.9% of total net revenues for the period, compared with $3,376.6 million and 64.4%, respectively, in 2007.
Net revenues for the Aviation Services segment in FY2008 reached $600.1 million, compared to $528.3 million in FY2007, reflecting the higher number of aircraft in service.
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