February 05, 2013
Embraer expects its 2013 delivery schedule to remain at about the same level as in 2012, albeit with a greater emphasis on its regional jet portfolio.
With an outlook for 195-215 deliveries this year, the Brazilian manufacturer expects rates to roughly match the 205 deliveries for 2012 reported in January. However, in contrast to last year, business jet deliveries in 2013 will exceed those of commercial jets.
Delivery of large executive jets, which have retained a relatively strong demand despite several years of global economic woes, could grow the most in 2013, with the highest end of Embraer guidance indicating a 36% increase on the 22 deliveries recorded in 2012 to 30 aircraft. At the lower end of the forecast, large business jet deliveries still are expected to grow to 25 aircraft in 2013.
The percentage growth for Embraer’s smaller executive jets is less impressive, although the growth is based on higher 2012 deliveries. By unit count, though, the 4-17% year-over-year improvement expected on the 77 light jet deliveries posted in 2012 still accounts for three to 13 more aircraft.
Commercial deliveries, meanwhile, are expected to decline 10-15% from the 106 recorded in 2012, to 90-95 aircraft. Embraer is not providing guidance on aircraft type, but of the passenger jets delivered in 2012, the E-190 accounted for 62 aircraft, the E-195 23, the E-175 a further 20 and the E-170 just one.
The 2013 E-Jet delivery schedule represents about half the commercial backlog as of Dec. 31, although in the interim Embraer has received firm orders for 67 E-Jets from U.S. regional Republic Airways and Irish lessor Aldus Aviation Ltd.
Embraer this year expects to generate $5.9-6.4 billion in sales, with the commercial sector contributing 52% and executive jets a further 25%. The remaining 23% in revenue is expected to come primarily from delivery of military aircraft.
The airframer’s guidance also forecasts earnings before taxes, depreciation, amortization and rent to total $770-900 million, maintaining margins at about 13-14%. Spending this year will include $300 million on product development, $180 million on capital expenditure and $100 million on research. Embraer says it will release its 2012 earnings March 22.