Embraer Executive Summary

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Regardless of disappointing financials results, Embraer expects to enjoy a gradual increase of sales, based on solid demand for its regional planes and launch of new E190-E2. Net revenue should to between $6 billion and $6.4 billion – I estimated 6.1bi. Embraer expects deliveries of 105 to 110 jets in Commercial Aviation and 40 to 50 large jets and 75 to 85 light jets in Executive Jets, with Defense & Security revenues of US$ 0.7 to US$ 0.75 billion for the year.
Note on their investor relations page. | Revision to 2016 guidance
Business conditions in the executive jets industry have proven to be more difficult than expected thus far in 2016, with continued pressure on new jet sales from high levels of used jet inventories and a highly competitive …show more content…

With this impact combined with a US$ 50 million revenue reduction in the Other businesses segment as a result of a challenging business environment in Brazil, consolidated revenues for the year are now expected to stay within the range of US$ 5.8 – US$ 6.2 billion, a reduction from the previous range of US$ 6.0 – US$ 6.4 billion. With respect to the Commercial Aviation and Defense & Security segments, Embraer’s revenue and delivery outlooks remain …show more content…

These four firms are separated into two different markets; large commercial jet and regional jet market. Boeing and Airbus created a duopoly in the large commercial jet market while Embraer and Bombardier are the two dominant companies in the regional jet market. The Canadian company Bombardier invented the regional jet market with the CRJ, an evolution of the Challenger business jet. Embraer followed with its ERJ, a plane based on its successful Brasilia turboprop (Side note & picture).

Embraer then revolutionized the regional jet approach when the company designed a clean-sheet airplane, the E-Jet, with 2×2 seating with 18.5 inch seats and larger overhead bins than on the smaller, cramped CRJs and ERJs. The comfort level and passenger space exceeded the ubiquitous Boeing 737s and Airbus A320s and far surpassed the regional jets.

Embraer Strategy
Market Segment
Embraer is pursuing commercial, military and corporate aviation segments in the aerospace

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