Late Thursday, Empresa Brasileira de Aeronautica S.A., or Embraer (ERJ), a Brazilian manufacturer of commercial jets, reported a 44.4% decline in profit for the fourth quarter from the prior-year period, mainly due to the loss on derivatives positions and decrease in interest rates during the period. Revenue for the quarter declined 3% from the year-ago period. The company's net income for the fourth quarter declined to US$111.69 million, or US$0.18 per share, from US$200.88 million, or US$0.27 per share, in the same period last year. Earnings per ADS for the latest quarter were US$0.72, down from US$1.08 in the same period last year.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings per share for the quarter of US$1.09. Analysts' estimates typically exclude special items. The company incurred US$120.6 million in losses on derivatives positions in the latest quarter.
Income from operations for the quarter surged 66.1% to US$274.61 million from US$165.34 million in the previous year quarter.
Net revenues for the quarter declined 3% to US$1.82 billion from US$1.88 billion in the same period last year, reflecting the beginning of the economic downturn that commenced in September 2008. Analysts had a consensus revenue estimate for the quarter of US$1.92 billion.
Embraer delivered 59 jets in the Commercial Aviation, Executive Aviation, and Defense and Government segments. This compares to 61 jets the company delivered in the same period last year.
For fiscal year 2008, the company's net income declined to US$388.73 million, or US$0.56 per share, from US$489.31 million, or US$0.66 per share, in the previous year. Earnings per ADS for the year declined to US$2.24 from US$2.64 in the prior year. Analysts expected the company to report earnings per share for the year of US$2.59.
Net sales for the year were US$6.34 billion, up 20.8% from US$5.25 billion a year ago. Analysts expected the company to report revenues of US$6.41 billion for the year.
Total deliveries in 2008 were 204 jets, the most in a year in the company's history.
Embraer's firm order backlog on December 31, 2008, decreased 3.2%, compared to September 30, 2008, and reached US$20.9 billion, reflecting the economic downturn.
ERJ closed Thursday's regular trading session on the NYSE at US$14.67, up US$1.18 or 8.75% on a volume of 1.02 million shares.
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