During the 2nd quarter of 2011 (2Q11) Embraer delivered 25 jets to the commercial aviation market and 23 to the executive aviation market (20 light jets and 3 large jets);
2Q11 Revenues reached US$ 1,358.6 million, and Gross margin grew from 20.2% in 2Q10 to 22.4% in 2Q11;
2Q11 EBIT1 and EBITDA2 margin reached 7.8% and 11.3%, respectively, in line with the Company’s guidance, for an accumulated EBIT and EBITDA margin of 8.3% and 12.8%, respectively, for the first hal f of 2011;
2Q11 Net income attributable to Embraer and Earnings per ADS-basic totaled US$ 96.4 million and US$ 0.5328, respectively, compared to US$ 57.4 million and US$ 0.3173 in 2Q10;
Continuous improvement seen in the commercial aviation market, resulting in year to date sales of 62 new E-Jets and signed agreements for an additional 42 E-Jets, which are expected to be added to the Company’s backlog over the course of the following months.
In 2Q11 Executive Aviation delivered a total of 20 light jets and 3 large jets.
While the executive jets market is showing early stages of recovery, Embraer was able to announce important sales in recent months. During the Annual European Business Aviation Conve ntion & Exhibition, EBACE 2011, in May, Embraer and Comlux, The Aviation Group announced a contract for the ac quisition of three Legacy 650 executive jets and in July, Embraer and Minsheng Financial Leasing Co., Ltd., a subsidiary of China Minsheng Banking Co., Ltd. signed a Memorandum of Understanding (MoU) to purchase up to 20 of Embraer’s full line of executi ve jets. They are expected to be fully convert ed into firm orders in up to five years and deliveries could commence as early as 2011. With this MoU, Embraer further consolidates its presence in China’s business avi ation market, following the Company’s announcement in April 2011 of a cooperation with AVIC (Aviation Industry Corporation of China) to assemble business jets in China.
In April the Company delivered the 200th Phenom 100 jet to the U.S.-based Swift Aviation Group, Inc., of Phoenix, Arizona, and on June 10, the Embraer Executive Jets facility in Melbourne, Florida received the fuselage and wing parts of the first Phenom 100 to be assembled in the United States, reinforcing the Company’s target to deliver the fi rst U.S.-assembled Phenom 100 before the end of 2011. The Company already has 65 employees in Melbourne,and is in the process of hiring more this year, keeping its promise to bring the products closer to the customers. July also saw the fuselage mating of the forward, mid and rear sections of the fi rst Legacy 500.
Continuing its effort to better serve the market, Embraer also announced during the EBACE 2011 Trade Show relevant improvements in both its Customer Support structure and Authorized Sales Representatives networks in Europe, the Middle East and Africa regions. This referred mainly, to the addition of two new regional customer support and services managers in Dubai, United Arab Emirates (UAE) and in London, U.K., several new appointments of authorized service center (ASC) to the customer support network, as well as the nomination of the Barbedos Group Limited as the Company’s executive jets authorized sales representative (ASR) for West Africa encompassing Cameroon, Equatorial Guinea, Gabon, Ghana, Nigeria, and Senegal.