Embraer recorded first quarter 2009 (1Q09) net sales of $1,154.1 million and a net loss of $23.4 million.
Owing to the severe worldwide economic downturn since September 2008, Embraer recorded cancellations of some of the firm orders of its executive aviation backlog as well as deferrals of deliveries scheduled for the commercial aviation segment. As a result, the company’s firm order backlog on 31 March 2009, decreased by 5.7% compared to the previous quarter, totalling $19.7 billion. The backlog of the Embraer 170/190 family has a total of 875 firm orders and 792 options, with 354 aircraft to be delivered.
In 1Q09, Embraer delivered 40 jets to the commercial and executive aviation segments, a reduction of 11.1% when compared with 45 deliveries in the first quarter of 2008 (1Q08).
In light of this new scenario, Embraer revised its revenue guidance for 2009 to $5.5 billion, broken down as $3.3 billion in revenues for the commercial aviation segment, $0.8 billion for the executive aviation segment, $0.6 billion to the defence and government segment and $0.8 billion for services and other revenues. The company has also reduced its delivery guidance for 2009 down from 270 to 242 commercial and executive aircraft deliveries, with 115 deliveries to the commercial aviation segment, 17 Legacy 600 and Lineage 1000 jets to the executive aviation segment plus 110 Phenom jets to the same segment. Embraer’s total investment guidance for 2009 was also revised to $350 million.
As a consequence of the crisis, a reduction in personnel (layoffs) was carried out in February 2009, involving approximately 20% of the company’s workforce and concentrated in the production and administrative areas, including the elimination of one layer in the management structure.
Net revenues for 1Q09 totalled $1,154.1 million, or a 13.6% decrease from the $1,335.9 million in net revenues of 1Q08, basically due to fewer deliveries in 1Q09.
After $45.4 million in income tax, Embraer reported a net loss of $23.4 million in 1Q09, compared to a net income of $85.0 million in 1Q08.
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