July 28, 2017, © Leeham Co.: Embraer reported first half net income of $101.6m after a $59.1m net profit for the second quarter.
Revenues for the half were $2.8bn and $1.77bn for the quarter.
EMB delivered 35 EJets during the quarter and 53 for the half.
Free cash flow for the quarter was $220m but just $20.7m for the half.
The company had $3.55bn in cash and securities at the end of the half.
The backlog of all civil, corporate and military programs declined from $19.2bn at March 31 to $18.5bn at June 30. A year ago, the backlog was $21.9bn.
The press release is here.
“We continue to see improvements on our costs,” said Paulo Cesar, CEO.
Cesar said the recent demo flights of the KC-390 were “flawless,” with 50,000 miles throughout Europe completed. Certification efforts continue.
Cesar was optimistic about maintaining a 1:1 book:bill order for the EJet this year. “The beauty of what we are seeing is a combination of the E1 and the E2,” and the smaller EJet with the larger one. But Cesar declined details of where the strength of the campaigns are.
“We’re still working on 2018 and the following years [for deliveries],” he said. Next year is the start of transition of the E1 to the E2. Cesar declined to predict the number of deliveries next year.
(If Embraer is like Boeing as the latter transitions from the 737NG to the MAX, integration of the 787-10 into the 787 line and the future transition of the 777 Classic to the 777X, it’s likely EJet deliveries won’t match production.)