UPDATE 2-Embraer seeks to maintain profit margin on stronger business jets

miércoles 26 de febrero de 2014 15:45 GYT
 

* Still aiming for 13-14 pct EBITDA, 9-9.5 pct EBIT margins

* 4th-qtr profit more than doubled on late delivery surge

* CEO sees book-to-bill ratio of 1 or better this year

* Shares rise as much as 6 pct, best session in eight months (Adds CEO comments, financial details, updates stock price)

By Brad Haynes and Roberta Vilas Boas

SAO PAULO, Feb 26 (Reuters) - Brazil's Embraer SA , the world's No. 3 commercial planemaker, said on Wednesday it was aiming for stable profit margins in 2014 as better pricing on executive jets should offset deep discounts on big regional jet orders.

Embraer shares rose as much as 6 percent on Wednesday, their best session in eight months, as the company issued a steady outlook after better-than-expected earnings.

The planemaker's outlook reinforced the advantages of an increasingly diversified revenue stream, which now depends on airlines for just half of sales.

"The major headwind we have in 2014 is ... the reduction in gross margins on the commercial jets, which remain our main business. So we intend to compensate that with better margins in executive aviation and hopefully also in defense," Chief Executive Frederico Curado told analysts in Sao Paulo.   Continuación...