Embraer Releases Second Quarter 2009 Results in US GAAP

SAO JOSE DOS CAMPOS, Brazil, July 30 /PRNewswire-FirstCall/ -- Embraer
(BM&F BOVESPA S.A.: EMBR3; NYSE: ERJ), the world's leading manufacturer of
commercial jets with up to 120 seats, recorded net sales of
US$ 1,456.6 million in the second quarter 2009 (2Q09), and net income of
US$ 67.8 million, equivalent to diluted earnings per ADS of US$ 0.3750.
In 2Q09, Embraer delivered 56 jets to the commercial aviation, executive
aviation and defense segments, compared to 52 jet deliveries in the second
quarter of 2008 (2Q08). The Company's firm order backlog on June 30, 2009,
remained stable compared to the previous quarter, totaling US$ 19.8 billion.
The backlog of the EMBRAER 170/190 family accumulated a total of 882 firm
orders and 794 options, with 328 aircraft to be delivered.
Despite a higher number of deliveries, net revenues for 2Q09 totaled
US$ 1,456.6 million, or a 10.9% decrease from the US$ 1,635.0 million in net
revenues of 2Q08, basically due to a different product mix in 2Q09, also
including 15 Phenom 100 jet deliveries.
The gross margin for 2Q09 totaled 23.1%, or an increase over the 21.9%
gross margin of 2Q08, mainly due to productivity gains achieved through the
P3E program, widely commented on by the Company.
Income from operations totaled US$ 174.6 million in 2Q09 or 54.2% more
than US$ 113.2 million recorded for the same period last year. The increase is
due to the higher gross margin in the quarter, and also to decreased operating
expenses, both attributable to productivity gains and a strong control over
the Company's cost structure. The operating margin was 12.0% in 2Q09, or an
increase over the 6.9% operating margin for 2Q08.
After US$ 63.4 million in income tax expense, Embraer's net income was
US$ 67.8 million in 2Q09, compared to a net income of US$ 134.4 million in
2Q08. The net margin was 4.7% in 2Q09, compared to 8.2% in 2Q08.
The Company's operating and financial information is presented, except
where otherwise stated, on a consolidated basis in United States dollars (US$)
in accordance with US GAAP. The financial data presented in this document as
of and for the quarters ended June 30, 2008, March 31, 2009 and June 30, 2009,
are derived from the unaudited financial statements, except where otherwise
stated. In order to better understand the Company's operating performance,
additional information is also presented at the end of this release, in
accordance with Brazilian Corporate Law ("Brazilian GAAP").
This document may contain forward-looking statements regarding
circumstances or events yet to take place. Such statements are based largely
on current expectations, forecasts of future events, assumptions and on
financial tendencies that affect the Company's businesses, and may prove not
to be accurate and are not guarantees of performance. They are subject to
risks, uncertainties and assumptions that are difficult to predict and that
may include, among others: general economic, political and trade conditions in
Brazil and in those markets where the Company does business; expectations on
industry trends; the Company's investment plans; its capacity to develop and
deliver products on the dates previously agreed upon; and existing and future
governmental regulations. The actual results can, therefore, differ
substantially from those previously published as Company expectations.
Further, in view of the inherent risks and uncertainties, the estimates,
events and circumstances in such statements may not occur. The words
"believe," "may," "is able," "will be able," "estimate," "intend," "continue,"
"project," "anticipate," "expect" and other similar terms are supposed to
identify such forward-looking statements. The Company is not obligated to
publish updates nor to revise any such statements due to new information,
future events or otherwise.
Investor Relations
Carlos Eduardo Camargo
Caio Pinez
Juliana Villarinho
Paulo Ferreira

Tel: +55 (12) 3927 4404

SOURCE Embraer

Investor Relations, Carlos Eduardo Camargo, Caio Pinez, Juliana Villarinho, or
Paulo Ferreira, +011-55-12-3927-4404, all for Embraer