) and Telecomunicações Brasileiras S.A. ("Telebras") recently
signed a shareholder agreement, to form Visiona Tecnologia Espacial
S.A., the satellite program within Brazilian space industry.
Embraer will hold 51% of Visionas share capital, while Telebras
will hold the rest.
Following the terms of Memorandum of Intent announced in
November 2011, Visiona will focus on the Brazilian Geosynchronous
Satellite, which will serve the satellite communications needs of
the Federal Government. Moreover, it will support the National
Broadband Program as well as strategic defense transmissions.
Visiona, with its head offices in the Technological Park of the
city of São José dos Campos, São Paulo, Brazil, will team up with
Brazil's aerospace educational and research organizations. This is
expected to accelerate the capabilities of the Brazilian space
industry positioning Visiona as the leader of the Space Technology
Development Centern in the coming years.
Frederico Curado, Embraer President and CEO, proudly announced
this project as a 'historic step' targeted toward technological and
industrial improvement of Brazil's space industry. Moreover, he
felt confident enough on Embraer's partnership with Telebras as
well as with the Brazilian Government, foreseeing a successful
satellite program in times ahead.
Brazil-based Embraer's product portfolio supports strong
customer orders worldwide. Its diversified global footprint offers
tough competition to industry players of the likes of
Lockheed Martin Corporation
Northrop Grumman Corporation
We currently maintain a long-term 'Neutral' recommendation on
the stock. Furthermore, Embraer has a Zacks # 3 Rank, which
translates into a short-term (1-3 months) 'Hold' rating.
The Zacks Consensus earnings per share Estimate for the second
quarter 2012 is 56 cents.
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