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Embraer Profits Jump 120% on Booming Small Jet Sales

razilian aircraft manufacturer Embraer said Thursday that profits more than doubled in the second quarter, driven by strong sales of midsize commercial jets and the company's new, popular executive jets.

     Empresa Brasileira Aeronatica SA, the world's fourth-largest plane maker, reported second- quarter profits of 176 million reals (US$110 million), up 120 percent from 80 million reals (US$50 million) in the same period a year ago.

     Profits hit 0.24 reals (US$0.15) per share, compared with 0.11 reals (US$0.07) per share in the same quarter of 2007.

     Second-quarter revenue was 2.7 billion reals (US$1.7 billion), up 22 percent from 2.2 billion reals (US$1.4 billion).

     Embraer said its backlog hit a record US$20.7 billion as of June 30, including US$6 billion in orders for executive jets.

     Embraer delivered 52 aircraft during the quarter, up from 36 in the year-earlier period. The company also reaffirmed its estimate that it will deliver 195 to 200 jets this year, including 10 to 15 of its hot new Phenom executive aircraft.

     Embraer said in June that it is in preliminary negotiations to sell the U.S. government eight 314-B1 Super Tucano light attack and training planes for use in Iraq.

     The company also confirmed that it sold one of the propeller-driven planes to a subsidiary of Blackwater Worldwide, the world's largest security contractor and the target of harsh criticism for its conduct in Iraq.

     The company's second-quarter earnings were released late Thursday after markets closed. New York-traded Embraer shares closed down 3.9 percent, or US$1.25, to US$30.56.

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