Paul Lewis/WASHINGTON DC
Brazilian regional aircraft manufacturer Embraer says 1998 was the most successful year in its history, after a record net profit of $103 million for the 12 months, compared with a loss of $29.6 million in 1997.
Embraer says the improvement stemmed from a 75% increase in turnover to $1.308 billion, $1.168 billion - or 90% - of which was generated from overseas sales, making the company Brazil's number two exporter.
The Sao Jose dos Campos-based manufacturer says its backlog rose to $4.1 billion during the year, and shrugs off the World Trade Organisation's (WTO) ruling against Brasilia's Proex export support programme.
Chief executive Mauricio Botelho said the 1998 result was "historic", attributing it to "the growing volume of aircraft delivered, a reduction in production cycles and costs, leading to significant gains in industrial productivity, and the efficient running of all sectors of our company".
Embraer also announced that "after a decade of unfavourable results", the turnaround permitted a $45.7 million dividend payment to shareholders.
Botelho is upbeat about this year and predicts that both Embraer and Canadian rival Bombardier will continue to enjoy government support for sales. He says the WTO ruling "will not jeopardise our decision on aircraft or existing business".
The huge sales boost was fuelled by the delivery of 60 ERJ-145s, along with 14 EMB-120 Brasilia turboprops, 10 AMX light combat aircraft, six EMB-312 Tucano trainers and 26 light aircraft.
New business booked last year included 86 ERJ-145s and 126 -135s (first delivery due July), the bulk of orders coming from US regionals American Eagle and Continental Express.
Embraer put $122.3 million back into development costs, with this set to rise by another $750 million with the launch of the new70 and 90-seat ERJ-170/-190regional jets.
Source: Flight International
