Brazil based commercial aircraft manufacturer and supplier
) recently announced its entry through a strategic venture
with France based Zodiac Aerospace in Mexico. The deal was highly
consistent with Embraer's strategy of enlarging its client base and
services in the international market.
Under the alliance, Embraer and Zodiac, a producer and dealer of
aerospace tools, will be jointly engaged in designing and
developing cabin interior essentials for the E-170 and E-190
regional aircraft through its operational unit in Mexico. Moreover,
with the expectation of creating more jet interiors in the years
ahead, Embraer is emphasizing improvement of its aircraft
arrangement by advancing the operational facility of its biggest
aircraft within 2018 and launching of the latest engines.
Of late, Embraer established several strategic partnerships to
extend its businesses beyond Brazil such as in China, Portugal and
the United States. The company's latest venture which would most
likely be a milestone in Embraer's long-term operations will
strengthen its foothold in the Mexican market. Moreover, it is
anticipated that such strategic deals would provide more stability
to the company's investment stream ensuring future development.
Brazil-based Embraer's product portfolio supports strong
customer orders worldwide. Its diversified global footprint offers
fierce competition to industry operators of the likes of
Northrop Grumman Corporation
The current Zacks Consensus Estimate for the second quarter of
2012 is 67 cents and for fiscal 2012 is $2.19. The company
currently retains a Zacks #3 Rank, which translates into a
short-term "Hold" rating. However, we are maintaining a long-term
"Neutral" recommendation on the stock.
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