By Guillermo Parra-Bernal and Alberto Alerigi Jr.
SAO PAULO, Oct 13 (Reuters) - Brazilian aircraft maker Embraer reported on Wednesday a 23 percent tumble in plane deliveries in the third quarter, underscoring still-sluggish demand from airlines and a slowing market for executive aviation.
The Sao Jose dos Campos, Brazil-based company, also the largest maker of regional aircraft, delivered 44 units in the July-through-September period, compared with 57 planes in the same period of last year, and 69 in the second quarter, according to an emailed statement.
'Overall, we are not encouraged by these delivery figures,' Citigroup analyst Stephen Trent wrote in a note to clients. 'We worry about 'increasing headwinds' in commercial jet competition.'
Embraer's pipeline of firm orders plunged 18 percent to $15.3 billion on a year-on-year basis, but rose slightly from $15.2 billion in the second quarter. Orders fell significantly from about $20 billion in March last year as airlines remained hesitant over the strength of the global economic recovery.
Voting shares of Embraer shed 1 percent to 11.94 reais in Sao Paulo, the first intraday drop in three sessions. Embraer's American depositary receipts gave up early gains and were trading 0.1 percent lower at $29.23 in midmorning.
The numbers indicate that Chief Executive Frederico Curado's strategy of increasing deliveries of executive jets suffered a setback as economies in the United States, Europe and Japan risk sliding into a double-dip recession.
Selling more of Embraer's smaller yet pricier jets helped the company weather a tumble in revenue and prevent profit margins from plummeting further in the prior quarter.
Commercial aircraft deliveries reached 20, compared with 29 both a year earlier and in the second quarter. Executive jet deliveries fell to 24 units in the third quarter, compared with 27 a year earlier and 40 in the second quarter.
No defense jet was delivered during the quarter, the company said in the statement.
The company delivered 154 planes this year during the first nine months, one more than in the same period a year earlier.
(Editing by Gerald E. McCormick and Matthew Lewis)
((guillermo.parra@thomsonreuters.com; + 55-11-5644-7714; Reuters Messaging: guillermo.parra.reuters.com@reuters.net) Keywords: EMBRAER/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
SAO PAULO, Oct 13 (Reuters) - Brazilian aircraft maker Embraer reported on Wednesday a 23 percent tumble in plane deliveries in the third quarter, underscoring still-sluggish demand from airlines and a slowing market for executive aviation.
The Sao Jose dos Campos, Brazil-based company, also the largest maker of regional aircraft, delivered 44 units in the July-through-September period, compared with 57 planes in the same period of last year, and 69 in the second quarter, according to an emailed statement.
'Overall, we are not encouraged by these delivery figures,' Citigroup analyst Stephen Trent wrote in a note to clients. 'We worry about 'increasing headwinds' in commercial jet competition.'
Embraer's pipeline of firm orders plunged 18 percent to $15.3 billion on a year-on-year basis, but rose slightly from $15.2 billion in the second quarter. Orders fell significantly from about $20 billion in March last year as airlines remained hesitant over the strength of the global economic recovery.
Voting shares of Embraer shed 1 percent to 11.94 reais in Sao Paulo, the first intraday drop in three sessions. Embraer's American depositary receipts gave up early gains and were trading 0.1 percent lower at $29.23 in midmorning.
The numbers indicate that Chief Executive Frederico Curado's strategy of increasing deliveries of executive jets suffered a setback as economies in the United States, Europe and Japan risk sliding into a double-dip recession.
Selling more of Embraer's smaller yet pricier jets helped the company weather a tumble in revenue and prevent profit margins from plummeting further in the prior quarter.
Commercial aircraft deliveries reached 20, compared with 29 both a year earlier and in the second quarter. Executive jet deliveries fell to 24 units in the third quarter, compared with 27 a year earlier and 40 in the second quarter.
No defense jet was delivered during the quarter, the company said in the statement.
The company delivered 154 planes this year during the first nine months, one more than in the same period a year earlier.
(Editing by Gerald E. McCormick and Matthew Lewis)
((guillermo.parra@thomsonreuters.com; + 55-11-5644-7714; Reuters Messaging: guillermo.parra.reuters.com@reuters.net) Keywords: EMBRAER/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.