UPDATE 1-Brazil's Embraer books steady commercial deliveries, backlog

lunes 11 de julio de 2016 10:47 GYT
 

(Adds details of deliveries, share performance, Boeing deal)

SAO PAULO, July 11 (Reuters) - Brazilian planemaker Embraer SA kept its commercial jet deliveries and order backlog roughly steady in the second quarter and wound down sales of an unprofitable executive jet that weighed on earnings in recent years.

The world's third-largest producer of commercial jets delivered 26 E-Jets to airlines from April to June, one fewer than a year earlier, according to a securities filing on Monday.

Executive jet deliveries fell to 26 aircraft from 33 in the second quarter of 2015. Embraer delivered none of its large Legacy 650 business jets, which are built on an old regional jet platform and have struggled to compete against newer rivals amid a glut of executive aircraft in a weak market.

Last month, Embraer announced the end of Legacy 650 production in China, ending a 13-year joint venture.

The company's backlog of firm orders, a gauge of future revenue, held steady in June at $21.9 billion, in line with its March backlog due to a 30-jet order from the Horizon Air affiliate of Alaska Air Group Inc.

Embraer shares rose 1 percent in Sao Paulo trading, in line with the benchmark Bovespa stock index.

Separately on Monday, Embraer announced that it had reached an agreement with Boeing Co to support the Brazilians' KC-390 military cargo aircraft, building on a 2012 joint sales deal in select markets.

The KC-390, which took its first flight in early 2015 and is now on a tour of eight countries, is on schedule for certification by the end of next year and deliveries beginning in the first half of 2018. (Reporting by Brad Haynes; Additional reporting by Stephen Eisenhammer; Editing by Chizu Nomiyama)