Embraer foresees 25% growth in sales for next year
Valor Econômico - 12/17/2007
The sales of the segments of commercial and executive jets may increase by 25% the income of Embraer for next year in comparison with 2007. The company - the third largest manufacturer of jets in the world - will close the year with sales of US$ 5 billion, one of the best results of the company in the North American currency, according to the company's CEO, Frederico Curado. In 2006, the company registered sales of US$ 3.8 billion. The Officer did not want to make comments on the income in local currency. According to Curado, 30% of the costs are in Reais. Throughout the year of 2007, Embraer registered orders of US$ 7 billion, a good part of such orders coming from outside the United States, the largest market of the company. Still, until the third quarter, the American market represented nearly 60% of the backlog of the company. Curado said the crisis in the housing industry in the United States - which rocked the international markets - should not affect the businesses of that country. China, which is already responsible for nearly 15% of the income of the company, and other emerging countries, may gradually increase their weight in the company's backlog. In the next two years, Embraer will make investments of US$ 1 billion. Half of this amount will be used in the reduction of operating costs and improvements in the production. The rest will be used to enhance the jets the company already produces. According to Curado, there will be no investments to increase the productive capacity. With capacity to produce 14 commercial jets a month (besides getting prepared to produce 20 monthly units of the Phenom family of executive jets), the production line of the company is already capable of complying with the company's backlog. Until 2010, the area of commercial aviation may represent 25% of the income, thanks to the growth of the sales of the Phenom family in emerging countries and in the United States.