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EMBRAER TO REVISE DELIVERIES TO SWISS
First deliveries of the EMBRAER 170 rescheduled to 2004, total aircraft ordered
reduced
Sao Jose dos Campos, March 25, 2003 - Embraer announced today that an agreement
has been reached with Swiss International Air Lines, regarding its ongoing
short-haul fleet renewal program. In light of the generally unfavorable economic
situation, and the carrier's current condition in particular, SWISS is reducing
its firm orders for EMBRAER 170 and EMBRAER 195 aircraft to 30 aircraft, 15 of
each model, from an original total of 60.
The EMBRAER 170 shall enter service at SWISS in August 2004, with four aircraft
delivered, followed by eight aircraft in 2005. Deliveries of the EMBRAER 195
will start in 2006. The number of options for both models is also being reduced
to 20, from 100 aircraft.
Part of the advancement payments previously paid will be returned to SWISS.
These refunds will not involve any cash payment by Embraer, since the advance
payments were being maintained in an escrow account and therefore had not been
reflected on the company's balance sheet.
As a result of the new agreement with SWISS, Embraer's firm backlog as of
December 31, 2002 would be US $ 8.3 billion, while its total backlog, including
options, would amount US$ 19.5 billion.
The EMBRAER 170/190 development program is otherwise proceeding as planned, with
the EMBRAER 170 expected to be certified in the second quarter of 2003, in order
to allow deliveries to Alitalia and GECAS.
In light with this agreement with SWISS Embraer is revising its total deliveries
forecasted for the years 2003 and 2004, which change respectively to 132 and 136
aircraft. Embraer will continue to review the risks and perspectives for the
aviation market and to pursue new and identified sales opportunities in the
United States, Europe, Asia and Latin America.
Note to editors
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Embraer (Empresa Brasileira de Aeronautica S.A. - NYSE: ERJ; Bovespa: EMBR3 and
EMBR4) is one of the world's leading aerospace companies. With headquarters in
Sao Jose dos Campos, state of Sao Paulo, and offices and customer service bases
in Australia, China, France, Singapore and the United States, the Company as of
December 31, 2002 has a total workforce of 12,227 people. Embraer was Brazil's
largest exporter from 1999 to 2001, and second largest in 2002. As of December
31, 2002, Embraer's firm order backlog totaled US$ 9.0 billion and the total
backlog, including options, equaled US$ 22.2 billion.
Embraer has 33 years of experience in designing, developing, manufacturing,
selling and providing after sales support to aircraft aimed for the global
airline, corporate and (more recently) defense markets.
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This document may contain projections, statements and estimates regarding
circumstances or events yet to take place. Those projections and estimates are
based largely on current expectations, forecasts on future events and financial
tendencies that affect the Company's businesses. Those estimates are subject to
risks, uncertainties and suppositions that include, among other: general
economic, politic and trade conditions in Brazil and in those markets where the
Company does business; expectations on industry trends; the Company's investment
plans; its capacity to develop and deliver products on the dates previously
agreed upon, and existing and future governmental regulations.
The words "believe", "may", "is able", "will be able", "intend", "continue",
"anticipate", "expect" and other similar terms are supposed to identify
potentialities. The Company does not feel compelled to publish updates nor to
revise any estimates due to new information, future events or any other facts.
In view of the inherent risks and uncertainties, such estimates, events and
circumstances may not take place. The actual results can therefore differ
substantially from those previously published as Company expectations.
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Press Headquarters North America Europe, Middle East
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Rosana Dias: Doug Oliver:
rosana.dias@embraer.com.br doliver@embraer.com Stephane Guilbaud:
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Andrea Bottcher:
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Cell: +1 954 439 1830 Phone: +33 (0) 1 49 38 45 30