Markets
BA

Embraer (ERJ) Posts Strong Q3 Jet Deliveries; Lags Backlog

Brazil-based Embraer SAERJ recently reported solid delivery figures for the third quarter and the first nine months of 2015. The company has delivered a total of 51 jets in the third quarter, up 50% year over year. Meanwhile, total deliveries over the nine-month period were 143.

Deliveries in the commercial aviation and business aviation markets were 21 and 30 jets respectively in the third quarter, and 68 and 75 in the nine-month period. In comparison, in the third quarter of 2014, the company had delivered 19 jets in the commercial aviation and 15 in the business aviation market.

Under commercial aviation, Embraer provided 20 E175s and 1 E195 jets. The rest were delivered to business aviation, inclusive of 21 light and 9 large jets.

Embraer reported an order backlog of $22.1 billion as of Sep 30, 2015. Although this represents a 3.5% decrease from the preceding quarter but is in line with the figure recorded a year ago.

During the third quarter, the company grabbed its largest order for 18 E175 jets worth $800 million at current list prices, placed by Skywest Inc. SKYW under an amendment to the existing Capacity Purchase Agreement with United Airlines.

In third-quarter 2015, Embraer's first Legacy 500 midsize jet was delivered to a Mexican customer. A subsidiary of the Lomex Group Aeronautics Division, Transpais Aereo, will operate the aircraft. Dallas-based Flexjet LLC, a leading provider of fractional jet ownership services, was announced as a new customer of the Legacy 500 during the quarter. Flexjet's fractional program already features the Embraer Phenom 300 light jet.

During the quarter, the business mid-light jet, Legacy 450, achieved type certification from the aeronautical authorities of Brazil, United States and Europe, thus opening up new prospects for the company.

Embraer is the world's third largest commercial aircraft manufacturer after The Boeing Co. BA and Airbus EADSY . The company designs, manufactures and sells aircraft and systems under both commercial as well as executive aviation, and defense and security segments.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

EMBRAER AIR-ADR (ERJ): Free Stock Analysis Report

BOEING CO (BA): Free Stock Analysis Report

AIRBUS GROUP NV (EADSY): Free Stock Analysis Report

SKYWEST INC (SKYW): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BA SKYW ERJ EADSY

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More