Embraer reduces costs and profits 31% more in Q2
Folha de S. Paulo
Embraer, one of the main Brazilian exporting companies, informed yesterday it profited R$ 466.9 million (US$ 245.7 million) in the second quarter, an amount 31% above the R$ 356.5 million (US$ 194.8 million) registered in the same period of 2008. The company emphasized in its balance the reduction of costs, "mainly in view of the adjustments started in 2008, both in the structures of staff of all areas and in the control of costs".
In the first quarter, the company resumed registering profit (R$ 38.3 million/US$ 20.2 million), after a sequence of two negative results. In the beginning of the year, Embraer fired 4,200 employees, cuts the president of the company, Frederico Curado, attributed to the reduction of 30% in the external demand for airplanes.
The net income amounted to R$ 3 billion (US$ 1.58 billion), which represents an increase of 11.5% compared to the second quarter of last year. The operating profit, before computing the financial expenses and earnings, remained at R$ 400.4 million (US$ 210.7 million) in the second quarter of this year, compared to the R$ 262.5 million (US$ 143.4 million) earned in the same quarter of 2008. From April to June, the operating margin achieved 13.3% and presented increase of 3.6 percent points in relation to the 9.7% seen in the same months of 2008. The expenses with monetary and exchange variations amounted to R$ 95.6 million (US$ 50.3 million), compared to the earnings of R$ 44.3 million (US$ 23.3 million) registered in the same period of last year. The manufacturer said the oscillation is due to the "impact of the exchange variations on assets and liabilities expressed in any currencies besides the Dollar".
In the second quarter, the company delivered 35 jets for the segment of commercial aviation and 19 for the segment of executive aviation, besides two Phenom 100 jets for the defense segment.
In the second quarter of 2009, the company delivered 56 aircrafts for the segments of commercial, executive and defense aviation. Despite the crisis and the impacts reported by the company, on June 30, this year, the firm orders of Embraer amounted to US$ 19.8 billion, almost the same as last year, with the Embraer 170/190 family accumulating a total of 882 firm orders and 794 purchase options.