Legacy 450, 500 To Boost Embraer Deliveries, Revenues

Embraer is estimating that deliveries of its large executive jets will increase by at least 50 percent in 2015 with the additions of its new Legacy 500 and 450.  At the same time, though, the Brazilian manufacturer believes light jet deliveries will ebb slightly.

Embraer projected 35 to 40 large executive jet deliveries this year, up from 24 in 2014. Light executive jet deliveries, however, are estimated to fall in the 80 to 90 range, down from 92 in 2014. Embraer’s Phenom 300 accounted for most of the light jet deliveries in 2014—73–making it the most delivered business jet model for the second year in a row.

With the Legacy 500 entering the market late last year and the 450 anticipated later this year, Embraer expects revenues for Embraer’s Executive Jets segment to reach between $1.7 billion and $1.85 billion, up from $1.591 billion in 2014.  Revenues for the segment slid in 2014 from $1.644 billion in 2013.

Aside from the increases led by the new models, Embraer reports “a recovery has yet to fully materialize.” The used aircraft inventory continues to pressure new aircraft demand, the company said.

Company-wide, Embraer reported net profit of $347.7 million on $6.288 billion in revenues in 2014, up slightly from the net profit of $346 million on $6.235 billion in revenues a year earlier.