(Recasts with share fall; adds details on plane deliveries,
By Brad Haynes
SAO PAULO Oct 14 Shares of Brazil's Embraer SA
tumbled on Tuesday after the company reported another
quarter of weak deliveries, forcing the world's third-largest
commercial planemaker into a steep climb to meet its full-year
Embraer delivered 19 regional E-Jets to airlines in the
third quarter, bringing total commercial deliveries in the first
nine months of 2013 to just 58 aircraft. In February, the
planemaker forecast 90 to 95 regional jet deliveries this year.
Shares of Embraer fell as much as 5.8 percent in Tuesday
trading, their biggest intraday drop in almost three months.
Paulo Cesar de Souza e Silva, Embraer's head of commercial
aviation, said at an event last month, "We expect a large number
of deliveries in the last quarter (of the year). We have very
good visibility of hitting our target for this year."
The year-end challenge raises the stakes in a standoff with
a local metalworkers union. A strike last week briefly halted
production, and union leaders have threatened to further
hamstring operations unless the company hikes wages by 10
Embraer shares rebounded slightly in afternoon trading to
18.16 reais, down 4.5 percent. The stock is up 33 percent this
year, among the top 10 gainers on the benchmark Bovespa stock
The planemaker's order backlog, reflecting the pipeline of
future revenue, rose to a four-year high of $17.8 billion at the
end of September from $17.1 billion at the end of June.
International Lease Finance Corp boosted the backlog with a
firm order for 50 next-generation E-Jets to start entering
service in 2018, converting a letter of intent signed at the
Paris Air Show in June.
Embraer also reported delivering 25 executive jets in the
third quarter - 21 light jets and four large jets. The executive
aviation unit has delivered 52 light jets and 14 large jets in
the first three quarters of 2013, well below its year-end target
of 80 to 90 light jets and 25 to 30 large jets.
The planemaker's backlog includes demand for its defense and
security business, but the company does not report its quarterly
deliveries of military aircraft.
(Additional reporting by Roberta Vilas Boas and Silvio
Cascione; Editing by Gerald E. McCormick and John Wallace)