Profits at Brazil’s Embraer fall 43 pct in first half

16 August 2007

Sao José dos Campos, Brazil, 16 Aug – Profit at Brazilian aircraft manufacturer Embraer fell 43 percent in the first half of 2007 against the same period of 2006, to 138.3 million reals, the company said Tuesday.

“Industrial costs are still high in relation to prouction cyclces that remain high, including a rise in labor costs,” Embraer said in a statement.

Another factor that contributed to a fall in profit was the increased value of Brazili’s currency (real) against the US dollar in the period.

From April to June, the real rose by over 9 percent against the US currency.

In the second quarter of the year Embraer posted profit of 79.7 million reals, a fall of 48.8 percent year on year.

In the first six months of the year, the company delivered 61 aircraft to its customers, 47 of which were for civil aviation, two military aircraft and 12 executive jets.

By the end of the year the company expects to have delivered between 165 and 170 aircraft and has adopted a number of measure to increase production in order to meet that target.

Embraer (Empresa Brasileira de Aeronáutica) is a leading manufacturer of commercial jets with a capacity of up to 120 people and is one of Brazil’s largest exporters.

The company has headquarters in São José dos Campos, in the state of Sao Paulo, and offices, industrial facilities and customer services workshops in Brazil, the United States, France, Portugal, China and Singapore.

Founded in 1969, Embraer designs, develops, manufactures and sells aircraft to the commercial, executive, defense and government aviation sectors. (macauhub)