UPDATE 1-Embraer trims global business jet outlook, U.S. looks stronger
(Adds details on regional forecasts, quotes)
By Asher Levine
SAO PAULO Aug 11 (Reuters) - Brazilian planemaker Embraer SA on Monday trimmed its global sales forecast over the next decade but raised its outlook for executive jet sales in North America, highlighting the importance of the U.S. market for a business jet recovery.
Embraer cut its worldwide outlook to 9,235 aircraft sold in the next decade, from 9,250 in last year's ten-year estimate. The planemaker expects 4,620 business jets to be sold for a total $120 billion in the North American market from 2015 to 2024, up from 4,530 planes in its 2014-2023 forecast.
The shift is taking place as jet buyers in emerging economies such as Brazil, Russia, India, China and South Africa, commonly referred to as the BRICS group, grow more weary over the outlook for domestic economic growth.
Embraer sees 850 jets sold in Latin America over the next ten years, down from 860 in the previous ten-year estimate, while the Asia Pacific and China market should see 1,405 jets sold, down from 1,530.
"We will continue to see slow growth in coming years due to indecision over whether or not to buy new planes or replace existing aircraft, principally in the BRICS countries," Embraer executive aviation chief Marco Tulio Pellegrini said at a news conference in Sao Paulo. "The recovery in the market will depend very much on the American economy."
Still, while many U.S. corporations are seeing profits rise, they have remained cautious about investing in new aircraft until economic growth looks more stable, Pellegrini said.
He added that a few quarters of encouraging U.S. growth would likely translate into higher business confidence and stronger jet sales ahead.
(Reporting by Asher Levine; Editing by Marguerita Choy)