Business Context and Reporting Period
This Form 6-K filing by Embraer S.A. covers the month of February 2013. The report details a significant contract award in the Defense and Security segment, specifically the selection of the A-29 Super Tucano by the U.S. Air Force (USAF) for its Light Air Support (LAS) program.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, margins, debt, or liquidity metrics for the reporting period. The only specific financial figure disclosed relates to the new contract award:
- Contract Value: USD 427 million.
- Scope: Includes 20 LAS aircraft, ground-based training devices, and all maintenance and supply requirements.
Material Changes
The primary material event is the USAF's selection of the A-29 Super Tucano following a thorough rebidding process. This award represents a strategic win for Embraer Defense and Security in partnership with Sierra Nevada Corporation (SNC), which serves as the prime contractor. The aircraft will be manufactured in Jacksonville, Florida.
Outlook, Management Commentary, and Risks
Management Commentary: Luiz Carlos Aguiar, President and CEO of Embraer Defense and Security, stated the award confirms the A-29 as the best aircraft for LAS operations. He emphasized the company's commitment to its U.S. investment strategy and its ability to deliver on schedule and within budget.
Outlook: The contract supports the U.S. objectives in Afghanistan and national security. The A-29 Super Tucano has a proven track record with over 190 units ordered and more than 170 delivered globally, logging over 180,000 flight hours.
Risks and Contingencies: The filing includes a standard disclaimer regarding forward-looking statements. Risks include general economic, political, and trade conditions in Brazil and other markets, industry trends, investment plans, capacity to deliver products on agreed dates, and governmental regulations. Actual results may differ substantially from expectations.
Key Facts for Investor Verification
- Verify the total contract value of USD 427 million and the specific deliverables (20 aircraft plus support).
- Confirm the role of Sierra Nevada Corporation as the prime contractor and the manufacturing location in Jacksonville, Florida.
- Assess the impact of this award on the Defense and Security segment's backlog and future revenue recognition.
- Note that this filing does not contain quarterly or annual financial performance data; refer to Form 20-F for comprehensive financials.