Business Context and Reporting Period
This Form 6-K filing by Embraer S.A. covers the second quarter of 2009 (2Q09), with data reported as of June 30, 2009. Embraer is a Brazilian manufacturer of commercial, executive, and defense aircraft. As of the reporting date, the company employed 17,237 people (excluding subsidiaries OGMA and HEAI) and operates globally with facilities in Brazil, the U.S., Europe, China, and Singapore.
Key Financial and Operational Metrics
- Firm Order Backlog: US$ 19.8 billion as of June 30, 2009.
- Total Aircraft Deliveries (2Q09): 56 aircraft.
- Deliveries by Segment:
- Commercial Aviation: 35 aircraft.
- Executive Aviation: 19 aircraft.
- Defense: 2 aircraft.
- Commercial Backlog by Family:
- ERJ 145 Family: 12 aircraft remaining.
- EMBRAER 170/190 Family: 328 aircraft remaining.
Note: The filing does not provide specific revenue, profit, cash flow, margin, or debt figures for the period.
Material Changes and New Contracts
During 2Q09, Embraer secured several significant contracts and milestones:
- KLM Cityhopper: Signed for 7 firm orders of the EMBRAER 190, confirming options from a 2007 contract. The airline holds 11 additional purchase options.
- Austral Líneas Aéreas: Signed a contract for 20 EMBRAER 190 jets. This value is not yet included in the firm order backlog.
- Harbin Embraer (HEAI): Adjusted an existing contract with Hainan Airline Company, reducing firm orders for the ERJ 145 from 50 to 25.
- Defense Contracts: Signed a contract with the Brazilian Air Force for the KC-390 military transport aircraft and a contract to modernize 12 Brazilian Navy jets.
- Certifications: The Phenom 100 received type certification from the European Aviation Safety Agency (EASA).
Outlook, Risks, and Contingencies
The filing includes a standard disclaimer regarding forward-looking statements. Management notes that projections are subject to risks including general economic, political, and trade conditions in Brazil and international markets, industry trends, investment plans, delivery capacity, and governmental regulations. The company does not undertake an obligation to update these estimates.
Key Facts for Investor Verification
- Verify the financial impact of the 20 EMBRAER 190 contract with Austral Líneas Aéreas, which is explicitly excluded from the current backlog.
- Monitor the reduction in the ERJ 145 backlog (down to 12 units) versus the growth in the E-Jet family backlog (328 units).
- Assess the implications of the contract reduction with Hainan Airline Company (from 50 to 25 units) on future revenue projections.
- Review the progress of the KC-390 military transport program and the modernization of Brazilian Navy jets as key defense segment drivers.
- Confirm the integration of the Phenom 100 into the European market following EASA certification.