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Brazil's Embraer delivers 159 jets in 2022, just short of forecast

Published 02/17/2023, 05:01 AM
Updated 02/17/2023, 09:36 AM
© Reuters. FILE PHOTO: Brazilian aircraft manufacturer Embraer unveils its new cargo plane, the KC-390, in Gaviao Peixoto October 21, 2014. REUTERS/Paulo Whitaker
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SAO PAULO (Reuters) - Brazilian planemaker Embraer SA (NYSE:ERJ) met its 2022 forecast for executive jet deliveries but fell just short of reaching previous guidance for commercial aircraft, after another year marked by supply chain constraints, data showed on Friday.

Investors had expressed concern that Embraer might miss its outlook for the year due to the parts disruptions, but the company in November said the lower end of guidance was still expected to be met despite the hurdles.

Brazil-traded shares in Embraer were up more than 1%, outperforming the local benchmark stock index Bovespa, which slipped 0.4%.

"We believe investors were already expecting a small miss on deliveries guidance for the commercial segment," analysts at JPMorgan (NYSE:JPM) said in a note to clients. "But the mix was better than expected - more heavy on executive jets."

The world's No.3 planemaker behind Boeing (NYSE:BA) and Airbus delivered a total of 159 aircraft in 2022, a securities filing showed, 18 more than in the previous year and nearly matching its target of 160.

Deliveries were boosted by executive jets, which totaled 102, in line with an outlook of between 100 and 110 and rising from 93 a year before. Commercial aviation deliveries hit 57, up 19% year-on-year but slightly below the 60-to-70 targeted.

In the fourth quarter, the Brazilian firm delivered 80 aircraft, including 50 executive and 30 commercial planes, it said.

© Reuters. FILE PHOTO: Technicians work on the assembly line of Embraer's E-Jet family of commercial planes at their factory in Sao Jose dos Campos, October 16, 2014.   REUTERS/Roosevelt Cassio

Embraer added that its firm order backlog ended 2022 at $17.5 billion, down from the four-year high of $17.8 billion seen in the previous two quarters but still above 2021 levels as the sector recovers from a pandemic-related downturn.

The backlog included a fresh order of 15 E195-E2 aircraft from an undisclosed customer and a new order of five jets from Spanish carrier Binter.

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