Embraer releases third quarter 2011 results

Embraer delivered 28 jets to the commercial aviation market and 18 to the executive aviation market (17 light jets and 1 large jet) in the third quarter of 2011. Revenues reached US$1,363.6m and Gross margin reached 21.2%, as a result of the mix in revenues and products; EBIT and EBITDA margin reached 9.1% and 13.8%, respectively, above the Company’s guidance, for an accumulated EBIT and EBITDA margin of 8.6% and 13.2%, respectively, for the first three quarters of 2011. Firm order backlog increased to US$16bn, as a result of sales activities in 3Q11, mainly in executive aviation. Net income totaled US$1.9m compared to US$126.1m in 3Q10, primarily as a result of deferred income taxes generated by the appreciation of the US Dollar during the period. Therefore, 3Q11 adjusted net income excluding deferred income taxes was US$125.7m. Net cash position totaled US$193.4m, mainly as a result of increased inventories.