Embraer Released its 3Q17 results on Friday, October 27 and shared their view of the upcoming 2018 as a transition year.
The Brazilian-based plane maker reported a net profit of $111.3 million for the 2017 third quarter, which is a great success compared to the $32.5 million net loss for the respective period in 2016. The consolidated revenues in 3Q17 were $ 1,310.4 million, representing a decline of 13.5% compared to 3Q16 due to lower deliveries in the Commercial Aviation and Executive Jets segments. Adjusted EBIT and Adjusted EBITDA margins were 5.3% and 10.9%, respectively. Net income attributable to Embraer shareholders and Earnings per ADS were $ 110.0 million and $ 0.60, respectively.
In terms of deliveries and order backlog the reported results are as follows:
- Embraer delivered 25 commercial jets and 20 executive jets (13 light and 7 large);
- The backlog at the end of the 3Q17 was $ 18.8 billion, representing an increase from the $ 18.5 billion reported at the end of 2Q17.
The company has delivered a total of 78 commercial aircraft through the first nine months of 2017 and expects the total number to reach 97-102 by the end of the year. This will be less than previous year, when they delivered 108 commercial aircraft. The projections for 2018 are even lower – in the range between 85 and 95. The expectations for the Executive jets are between 105 and 125 deliveries.
As a whole, Embraer’s CFO Jose Antonio Filippo, describes 2018 as a transition year. This is marked by the fact that the company re-engines their 70 to 130-seat passenger jets and has to face the competition of the CSeries, which is now backed by the partnership between airbus SA and Bombardier Inc.
The first E2 model, the E190-E2, will enter into service in 2018 and the market for Executive Jets and Defense & Security is expected to remain flattish. Hence, the Company releases 2018 Outlook for total revenues of US$ 5.3 to US$ 6.0 billion.