May 7, 2008 / 1:18 AM / 10 years ago

UPDATE 1-Brazil's Embraer 1st-qtr profit up 8 pct

(Recasts; adds net revenues, deliveries)

SAO PAULO, May 6 (Reuters) - Brazilian aircraft maker Embraer EMBR3.SAERJ.N said on Tuesday its first-quarter net profit rose 8 percent on higher sales from the year-ago period, but a strong local currency weighed on the results.

The world’s fourth-largest commercial aircraft manufacturer posted a net profit of 63.4 million reais ($38 million) in the first three months of 2008. In the fourth quarter, Embraer made a net profit of 212.7 reais.

Earnings before interest, taxes, depreciation and amortization, a measure of cash flow known as EBITDA, rose to 131.5 million reais from 113.7 million reais in the first quarter of 2007.

Jet deliveries in the first quarter rose sharply to 45 units from 25 aircraft a year earlier.

Net revenues jumped 32 percent to 2.3 billion reais, boosted by higher deliveries but impacted by the mix of products delivered and the foreign exchange rate. Brazil’s currency has been strengthening against the dollar, which affects big exporters like Embraer.

The company, whose core business is regional jets, has been diversifying its product line with smaller executive jets. In March, it said would invest $750 million to develop two new business jets, boosting its line-up of executive jets to six.

Embraer’s main rival in the regional jet market is Canada’s Bombardier Inc BBDb.TO. ($1=1.66 reais) (Reporting by Mauricio Savarese and Andrei Khalip, editing by Richard Chang)

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