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Strategies & Market Trends : Angels of Alchemy -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (7484)	8/6/2000 9:37:54 PM
From: ColtonGang	Read Replies (2) \| Respond to of 24256

ERJ.........a future hot issue........Embraer order book at $21 bln,planned investment $1.4 bln By Andrei Khalip SAO PAULO, Aug 6 (Reuters) - The head of Brazilian aircraft maker Embraer (NYSE:ERJ - news) was quoted as saying on Sunday that the firm, one of the world's leading commercial aircraft makers, had obtained a total of $21 billion in client orders. The figure that Mauricio Botelho gave to O Estado de Sao Paulo newspaper apparently represented both firm orders and options as late last month Embraer said its production backlog for firm orders of its regional jets stood at $10.2 billion. At July's Farnborough air show in England alone, Embraer received firm orders for 111 aircraft worth $1.9 billion, coming fifth by the size of orders among world's top producers. Last year, Embraer's firm order book was about $8 billion. Botelho told Estado Embraer's investment should reach $1.4 billion between 2000 and 2004, with $1.1 billion going into development of new models and $300 million into infrastructure, including the construction of a new Gaviao Peixoto plant and a research and testing centre. He also said the company was hoping to bring more foreign currency into Brazil thanks to successful international activities by Brazil's biggest exporter. ``Our projection is that between 2000 and 2004 net dollar inflows by Embraer should reach $6.5 billion,'' Botelho said. The inflows are much below the overall size of order because Embraer also spends a lot of money abroad, buying parts for its planes. Botelho said the company was increasing its participation on the military aircraft market and was planning to launch three new models based on its ERJ-145 regional jet platform. Botelho also told Reuters recently the company planned to bid with French companies to supply a Brazilian version of Dassault Mirage 2000 fighters to the Brazilian air force. Four French companies involved in the Mirage 2000 programme, including prime contractor Dassault Aviation, bought 20 percent of Embraer's voting shares last year. Embraer's core business is regional jets -- mid-range aircraft mostly seating under 100 people, which are forecast to be the fastest-growing segment of the commercial jet market. Airlines have been enthusiastic buyers of the aircraft, favoured by customers over turboprops. By the end of the first quarter of 2000, Embraer had delivered 225 jets to more than 25 clients worldwide, including American Eagle (NYSE:AMR - news) and Switzerland's Crossair . Last year, Embraer posted a net profit of $226 million on $1.9 billion in revenues. Embraer stock price peaked at 11 reais in early July amid market expectations of a bigger firm order book, which finally came in in line with analysts' forecasts, but later fell to 9.7 reais due to a major global share offer at a lower price.