Brazilian manufacturer Embraer reported net income of $80.8 million for 2015, down 76.8% from the company’s $347.7 million net profit in 2014.
Embraer’s 2015 revenue was $5.93 billion, down 5.7% year-over-year (YOY) from the manufacturer’s 2014 revenue of $6.29 billion. Embraer’s operating expenses for the year fell 2.6% YOY to $5.6 billion, resulting in operating profits of $331.5 billion, down 39% YOY.
Embraer’s fourth-quarter 2015 net profit was $114 million, up 20.1% YOY from $94.9 million in 4Q 2014. Fourth-quarter revenues were $2.07 billion, up 1.4% YOY; operating expenses in the fourth-quarter were $2.01 billion, up 8.6% YOY. The company’s fourth-quarter operating profit was $65.3 billion, down 66.7% YOY.
The company has chosen to include a loss of $100.9 million related to the Feb. 25, 2016, bankruptcy filing by Republic Airways in its 2015 fourth-quarter and 2015 full-year results.
“It is important to note that as of the end of 4Q15, there were a total of 28 E175 aircraft in Embraer’s firm order backlog for Republic,” Embraer said. “As of the date of Republic’s Chapter 11 filing … Republic had 24 E175 aircraft in Embraer’s backlog, which at the time were expected to be delivered between 2016 and 2017.”
Republic currently operates 50 ERJ-145s and 180 E170/E175 models in its fleet.
“The final Republic decision on how it will manage the future operation of these aircraft, and the receipt of future aircraft deliveries related to firm orders in Embraer’s catalog, is still ongoing,” Embraer said.
Embraer’s Commercial Aviation segment—which in 2015 accounted for 56.5% of the company’s total revenue (up 6.2 points from 2014)—generated $3.35 billion in net revenue for the full year, up 5.9% YOY. In the 2015 fourth quarter, the commercial aviation segment earned $1.12 billion, up 14.4% YOY, and accounted for 53.8% of the company’s total net revenue for the quarter (up 6.1 points from 4Q 2014).
Full-year net revenue for Embraer’s Defense & Security segment fell 44.3% YOY to $811.1 million, while full-year net revenue for the company’s Executive Jets segment grew 8.9% YOY to $1.72 billion.
Embraer delivered 101 commercial aircraft in 2015, compared to 92 delivered in 2014; 33 commercial aircraft were delivered in the fourth-quarter. Deliveries in 2015 included 82 E175s, eight E190s, nine E195s and two E170s.
As of the end of 2015, Embraer’s consolidated reported backlog was valued at $22.5, up 7.6% from $20.9 billion in 2014. The company’s commercial aviation firm backlog as of Dec. 31, 2015, was 513 aircraft, valued at $15.8 billion. Of that total, 169 are for current-generation E175s and 55 are for current-generation E190s. For Embraer’s forthcoming E2 jet series, firm orders are in place for 100 E175-E2s, 90 E195-E2s and 77 E190-E2s.
Embraer expects to deliver between 105 and 110 commercial aviation jets in 2016; its company guidance for 2016 is for expected net revenues between $6 billion and 6.4 billion. In 2015, Embraer fell short of the lower end of its projected net revenue guidance range by $172 million. But in 2015, the company squarely met its projected commercial aircraft deliveries guidance.