Certification of 170 inspires Brazilian optimism as deliveries improve at Canadian rival
Embraer is predicting a rebound this year after announcing last week a decline of nearly 40% in profits in 2003.
The Brazilian manufacturer says the improved forecast is driven by finally achieving Embraer 170 certification after a year-long delay, the improving health of the commercial market and emerging trends tilting airline interest towards the company's new family of 70- to 118-seat aircraft.
In Canada, meanwhile, rival Bombardier Aerospace last week announced that 2003 deliveries (covering the 12 months to the end of January) increased from 298 to 324, although annual revenues remained steady at C$11.3 billion ($8.51 billion).
But a C$777 million charge to restructure the company's rail division raises questions about Bombardier's ability to finance a proposed C$2 billion development effort for 110- to 120-seat aircraft.
In 2003, a weak market climate aggravated by the certification delays led Embraer to deliver 101 of the 148 aircraft in its original plan. Net income declined from $223 million in 2002 to $136 million. Bombardier delivered 232 regional aircraft, 89 business jets and three amphibians in its fiscal year ending in January.
Next year, Embraer plans to deliver 50 Embraer 170s and a total of 160 aircraft, close to pre-crisis delivery levels of 177 in 2000. The company also plans to continue momentum in defence market sales, which in 2003 jumped 106% to $262 million.
Embraer chief executive Mauricio Botelho says a decision in the long-delayed FX-BR fighter programme could be announced by the end of March. Embraer has teamed with France's Dassault to offer the Mirage 2000BR, but faces a challenge from Sukhoi's Su-35 and the Saab/BAE Systems JAS39 Gripen.
Embraer's corporate aviation net sales jumped by 58.6% to $230 million in 2003, and total business jet deliveries grew to 13 aircraft from eight aircraft.
STEPHEN TRIMBLE / WASHINGTON DC
Source: Flight International
