Brazilian airframer Embraer has posted a 3.7% rise in its second quarter net income on the back of a recovery in its commercial aviation segment.
The company earned $70.3 million in the quarter to 30 June, up from $67.8 million a year before. This was despite a 7.5% drop in operational revenues to $1.46 billion due to "the mix of products delivered", says the company.
Embraer's commercial aviation segment, which produces regional jets, accounted for 61% of the revenues. Executive aviation contributed 14.4% and defence 13%.
It delivered 69 aircraft during the quarter, with 29 going to the commercial aviation market and 40 to business aviation. Its firm order backlog at the end of the quarter is valued at $15.2 billion, equivalent to three years of projected annual revenue.
"The recovery of the market seen since the beginning of the current year is showing good opportunities for Embraer, mainly in the commercial aviation business, some of which have resulted in new orders," says the company.
This has resulted in Embraer increasing its annual revenue projection by 5% to $5.25 billion, and it is forecasting an operational margin of 6.5% instead of 6%.
Source: Air Transport Intelligence news