Embraer expects more sales in 2nd half
Valor Econômico
The combination of two factors - greater productive efficiency with lower costs, and a more favorable setting for sales - contributed for aircraft maker Embraer to have a more positive balance in the first quarter of this year. "The sales mix of the company has improved, with an increase in the area of defense, which is also quite profitable, but in order to keep it, the company has to start turning its sales campaigns into new orders", said the transports analyst of Banco Santander, Caio Dias.
According to the analyst, the projections indicate better sales as of the second half, but still fairly below those made before the crisis. The Financial and Investor Relations Vice President of Embraer, Luiz Carlos Aguiar, said the company does not see a worse setting than that of 2009. "We see a revenue reduction in 2010 due to the weaker sales, but looking ahead, we expect a much better setting than last year's". One of the positive indications in this direction, according to Embraer, is that the total of sales campaigns underway is 2.5 times bigger than in the last quarter of 2009.
The result of Embraer in the first quarter of 2010 pleased the market, even though the company registered a 33.3% fall (from R$ 2.7 billion/US$ 1.37 billion to R$ 1.8 billion/US$ 1 billion) in the net income compared to the same period last year. Some analysts say the balance sheet of the company remains solid because the company is much more efficient from the point of view of production and its net cash position is still comfortable, R$ 790.9 million (US$ 439.4 million).
The growth of the mix of income with the segments of defense and aeronautical services had a positive effect in the gross margin of the company, which went from 17.1% in the first quarter of 2009 to 20.7% in the first three months of this year, according to the balance sheet in this period. "We had a reduction in the deliveries in commercial aviation (from 32 to 21 aircrafts), which was offset by an increase in the participation of the sectors of defense and services, which represented 33.4% of the total of the earnings of the quarter, compared to 19.6% in 2009", stressed out Aguiar, of Embraer.