Business Context and Reporting Period
This Form 6-K filing by Embraer S.A. covers the month of February 2017. The report announces a significant commercial milestone: the selection of Norway's Widerøe as the launch operator for the E190-E2, the first aircraft in the new E-Jets E2 family.
Key Financial Metrics and Order Book
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period. However, it details the following order book metrics:
- New Order Value: Potential list price value of up to USD 873 million (contingent on all options being exercised).
- Widerøe Contract: 3 firm orders for the E190-E2 and purchase rights for 12 additional E2 family aircraft.
- Total E-Jets E2 Backlog: 275 firm orders plus 415 commitments (Letters of Intent, options, and purchase rights), totaling 690 aircraft.
- Historical E-Jets Program: Over 1,700 orders and more than 1,300 deliveries logged to date.
Material Changes and Program Status
The primary material change is the confirmation of the E190-E2 launch customer. Management stated that the E2 program remains on target regarding technical specifications, schedule, and budget. The first delivery to Widerøe is scheduled for the first half of 2018.
Guidance, Outlook, and Management Commentary
John Slattery, President & CEO of Embraer Commercial Aviation, expressed confidence in the partnership, noting that Widerøe shares Embraer's pioneering spirit. The company maintains that the certification campaign is proceeding with a focus on maturity to ensure a smooth entry into service. Widerøe plans to configure the aircraft with a single-class layout of 114 seats.
Risks and Contingencies: The filing notes that the USD 873 million order value is potential and depends on the exercise of all purchase rights. No specific financial risks or contingencies were detailed in this press release.
Key Facts for Investor Verification
- Verify the timing of the first E190-E2 delivery to Widerøe (targeted for H1 2018).
- Monitor the conversion rate of the 415 non-firm commitments (options and LOIs) into firm orders for the E2 program.
- Confirm the program's adherence to the stated "on time and on budget" status as certification progresses.
- Review subsequent quarterly filings for the impact of this order on backlog revenue recognition and cash flow.