Embraer S.A. (NYSE:ERJ) Q2 2019 Earnings Conference Call - Final Transcript

Aug 14, 2019 • 09:30 am ET


Embraer S.A. (NYSE:ERJ) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the audio conference call that will review Embraer's Second Quarter 2019 Results. Thank you for standing by. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions to participate will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded and webcasted at ri.embraer.com.br.

This conference call includes forward-looking statements or statements about events or circumstances which have not occurred. Embraer has based these forward-looking statements largely on its current expectations and projections about future events and financial trends, affecting the business and its future financial performance. These forward-looking statements are subject to risks, uncertainties and assumptions, including among other things, general economic, political and business conditions in Brazil and in other markets where the company is present. The words believe, may, will, estimate, continues, anticipates, intends, expects and similar words are intended to identify forward-looking statements. Embraer undertakes no obligation to update publicly or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this conference call might not occur. The company's actual results could differ substantially from those anticipated in the forward-looking statements.

Participants on today's conference call are Mr. Francisco Gomes Neto, President and CEO, Mr. Nelson Salgado, Executive Vice President, Finance and Investor Relations and Mr. Eduardo Couto Director of Investor Relations.

I would now like to turn the conference over to Mr. Nelson Salgado. Please go ahead, sir.

Nelson Krahenbuhl Salgado

Good morning, everyone, and thanks for joining Embraer's second quarter 2019 conference call. We start with the operational highlights at Page 4 with commercial aviation. Embraer delivered 26 E-jets in the second quarter and 37 year-to-date. As far as sales activity, Embraer signed up to 78 aircraft commitments during the Paris Air Show, including United Airlines for up to 39 E175, including 23 orders.

Fuji Dream Airlines ordered two E175s to add to Embraer's fleet and Binter signed an order for two additional E195-E2s. KLM Cityhopper signed an intention to purchase up to 35 E195-E2s, which [Indecipherable] included in our backlog yet. After the air show, SkyWest also signed a firm order for seven E175 E-Jets. In terms of new programs, the 195-E2 that were certified in the first part of the year will have its first delivery to Azul Airlines in the third quarter of 2019. And Azul, in preparation for starting the operation of the aircraft, signed a contract for a long-term Flight Hour Pool Program with Embraer. The 195-E2 began also its global demo tour in Asia.

Moving to Executive Jets at Slide 5. Embraer delivered 25 executive jets, 19 light and six large in the second quarter of 2019 and 36 year-to-date. This volume is around 20% above the same period of 2018. As far as the new products, the Praetor 600 and the Praetor 500, the Praetor 600 received triple-certification from ANAC, FAA and