Embraer celebrates strong 2010

Embraer met or surpassed all of its 2010 annual guidance and projections, including aircraft deliveries, net revenues and operating margin.

Embraer met or surpassed all of its 2010 annual guidance and projections, including aircraft deliveries, net revenues and operating margin.

* During the 4th quarter of 2010 (4Q10), Embraer delivered 31 commercial and 61 executive aircraft and ended the year with total deliveries of 101 commercial and 145 executive aircraft (126 light jets and 19 large jets), surpassing the 2010 annual delivery guidance for all aircraft categories;

* As a consequence, 2010 Net sales totaled US$ 5,364.1 million or US$ 5,354.5 million in US GAAP, which is higher than the US$5,250.0 million annual guidance;

2011 OUTLOOK

The Company expects a Net sales of US$ 5.6 billion in 2011 distributed as follows:

• Commercial Aviation US$ 3.1 billion

• Executive Aviation US$ 1.2 billion

• Defense and Security Business US$ 600 million

• Aviation Services and Other Business US$ 700 million

COMMERCIAL AVIATION

The Company delivered 101 commercial jets in 2010, of which 31 were in 4Q10 (including one ERJ 135 delivered to the Defense and security business). Throughout 2010, the commercial aviation market presented concrete signs of recovery and gradually regained its business activity. Air transport demand recovered better than expected and the airline industry returned to profitability (as per IATA projection net profit nearly US$ 15 billion). In addition, some airlines, like those in the United States, reinforced their position through merger/acquisition and are ready for future fleet expansion and replacement of ageing aircraft.

In 2010, Embraer sold 97 new airplanes, which is close to the 101 units delivered. As Paulo Cesar de Souza e Silva, Embraer’s Executive Vice President for Airline Market, said, “The 97 new sales sustain our backlog and represent a strong indication of market confidence in Embraer jets, which have been essential for airlines’ operational and financial improvement process”.

EXECUTIVE AVIATION

Executive aviation deliveries in 4Q10 totaled 61 aircraft, among which 126 light jets and 19 large jets. It is important to note that although the total number of deliveries in 4Q10 was the same as in 4Q09, Revenues in 4Q10 surpassed 4Q09 due to a better mix of products.

Overall, the 144 executive jets delivered during 2010 mark a record year for Embraer in numerical terms. In spite of the impacts left by the 2008 crisis, the Company met its 2010 Net sales guidance of US$ 1.1 billion for the Executive aviation segment.

In 2010, the Phenom 100 was the most delivered executive jet. The Phenom 100’s succe ss is also reflected in the Company’s increasing market share, which is the fastest growing in business aviation in terms of units delivered.

4Q10 was also marked by the certification and commencement of deliveries of the Legacy 650, which has already been delivered to customers in Europe, Brazil and Middle East. The contract signed with Netjets, Inc. in October, 2010, for 50 Phenom 300 executive jets, plus 75 options, became effective during December and was included in the Company’s 4Q10 firm order backlog.

“We believe 2011 will be another important year for Embraer’s consolidation in the business aviation arena. We are excited about two important events that will take place in 2011: the delivery of the first Phenom 100 manufactured in Melbourne, Florida, in the United States, as well as the first flight of our brand-new midsize jet, the Legacy 500”, said Luís Carlos Affonso, Embraer Executive Vice President, Executive Jets.