Embraer Releases Second Quarter 2009 Results in US GAAP

SAO JOSE DOS CAMPOS, Brazil, July 30 /PRNewswire-FirstCall/ -- Embraer (BM&F BOVESPA S.A.: EMBR3; NYSE: ERJ), the world's leading manufacturer of commercial jets with up to 120 seats, recorded net sales of US$ 1,456.6 million in the second quarter 2009 (2Q09), and net income of US$ 67.8 million, equivalent to diluted earnings per ADS of US$ 0.3750.

In 2Q09, Embraer delivered 56 jets to the commercial aviation, executive aviation and defense segments, compared to 52 jet deliveries in the second quarter of 2008 (2Q08). The Company's firm order backlog on June 30, 2009, remained stable compared to the previous quarter, totaling US$ 19.8 billion. The backlog of the EMBRAER 170/190 family accumulated a total of 882 firm orders and 794 options, with 328 aircraft to be delivered.

Despite a higher number of deliveries, net revenues for 2Q09 totaled US$ 1,456.6 million, or a 10.9% decrease from the US$ 1,635.0 million in net revenues of 2Q08, basically due to a different product mix in 2Q09, also including 15 Phenom 100 jet deliveries.

The gross margin for 2Q09 totaled 23.1%, or an increase over the 21.9% gross margin of 2Q08, mainly due to productivity gains achieved through the P3E program, widely commented on by the Company.

Income from operations totaled US$ 174.6 million in 2Q09 or 54.2% more than US$ 113.2 million recorded for the same period last year. The increase is due to the higher gross margin in the quarter, and also to decreased operating expenses, both attributable to productivity gains and a strong control over the Company's cost structure. The operating margin was 12.0% in 2Q09, or an increase over the 6.9% operating margin for 2Q08.

After US$ 63.4 million in income tax expense, Embraer's net income was US$ 67.8 million in 2Q09, compared to a net income of US$ 134.4 million in 2Q08. The net margin was 4.7% in 2Q09, compared to 8.2% in 2Q08.

The Company's operating and financial information is presented, except where otherwise stated, on a consolidated basis in United States dollars (US$) in accordance with US GAAP. The financial data presented in this document as of and for the quarters ended June 30, 2008, March 31, 2009 and June 30, 2009, are derived from the unaudited financial statements, except where otherwise stated. In order to better understand the Company's operating performance, additional information is also presented at the end of this release, in accordance with Brazilian Corporate Law ("Brazilian GAAP").

This document may contain forward-looking statements regarding circumstances or events yet to take place. Such statements are based largely on current expectations, forecasts of future events, assumptions and on financial tendencies that affect the Company's businesses, and may prove not to be accurate and are not guarantees of performance. They are subject to risks, uncertainties and assumptions that are difficult to predict and that may include, among others: general economic, political and trade conditions in Brazil and in those markets where the Company does business; expectations on industry trends; the Company's investment plans; its capacity to develop and deliver products on the dates previously agreed upon; and existing and future governmental regulations. The actual results can, therefore, differ substantially from those previously published as Company expectations. Further, in view of the inherent risks and uncertainties, the estimates, events and circumstances in such statements may not occur. The words "believe," "may," "is able," "will be able," "estimate," "intend," "continue," "project," "anticipate," "expect" and other similar terms are supposed to identify such forward-looking statements. The Company is not obligated to publish updates nor to revise any such statements due to new information, future events or otherwise.

    Investor Relations
    Carlos Eduardo Camargo
    Caio Pinez
    Juliana Villarinho
    Paulo Ferreira

    Tel: +55 (12) 3927 4404

SOURCE Embraer