Air Transport World

Higher costs, fewer deliveries pinch profit for Embraer.(Regional News)(Embraer Empresa Brasileira de Aeronautica S.A.)(Brief article)

Embraer reported $390.1 million in 2006 net income, a 13% drop from the previous year, which the company attributed to rising costs and fewer deliveries. It reported net sales of $3.8 billion compared to sales of $3.83 billion in 2005, while the firm order backlog increased 11% to $14.3 billion. Fourth-quarter net income was down 20.3% to $124.4 million on an 8.9% fall in net revenue to $1.08 billion.

The Brazilian manufacturer had expected to deliver up to 145 aircraft in 2006 but that fell to 130 due primarily to production problems related to the wing assembly. …

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