UPDATE 2-Embraer lifts revenue target despite lower E-Jet output

Mon Feb 4, 2013 5:44pm EST
 
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* Private jets, defense unit could lift revenue to $6.4 bln

* Regional jet production falls to 90-95 from 105 in 2012

* EBIT margin seen stable, EBITDA margin outlook up slightly

By Brad Haynes

SAO PAULO, Feb 4 (Reuters) - Brazil's Embraer SA , the world's third-largest commercial planemaker, said on Monday it could post a slight increase in revenue this year despite cutting production of its regional E-Jets by as much as 15 percent.

Embraer said in a filing that it expects net revenue of $5.9 billion to $6.4 billion this year, after meeting estimates for 2012 revenue of $5.8 billion to $6.2 billion.

A rebounding executive jet division and fast-growing defense operations will be crucial to growth, as the planemaker expects to deliver between 90 and 95 regional aircraft to commercial airlines this year, down from 106 commercial jets in 2012.

Sales of regional jets, which made up more than two thirds of Embraer's revenue five years ago, are expected to contribute just 52 percent of revenue next year, after weak demand drained its order backlog to a six-year low.

Embraer and its chief rival for the regional jet segment, Canada's Bombardier Inc, have each landed a hefty order since December, tapping what they hope will be a flood of fresh demand from major U.S. carriers.   Continued...