Air Transport World

Labor, production issues pull down Embraer profit.(RegionalNews)(Financial report)

Embraer's first-quarter profit, dragged down by ongoing problems with its supply chain and production capabilities, fell 60% to $26.2 million from $65.3 million in the year-ago quarter. The company delivered 25 aircraft in the quarter, slightly down from 27 in the same period last year. Revenue was up 4.3% to $843.4 million. Backlog reached a record $15 billion.

In an effort to improve production, Embraer has hired nearly 2,000 employees since the beginning of the year, said President and CEO Frederico Curado, who replaced Mauricio Botelho on April 23. The company also increased its base of subcontractors, added heavy tooling for wing assembly and production of fuselage sections and increased the number of final assembly bays for the 170/190. …

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