Embraer S.A (ERJ) received orders for five military aircraft including an Embraer 190 jet with logistic support and two Airbus C-295 planes from the Defense Ministry of Ghana.
The contract will be valued at approximately $200 million, which includes $105.3 million Brazilian-made Embraer 190 coupled with the construction of an ultra-modern hangar.
The order for the above five military aircrafts are expected to be delivered by the end of 2012.
Of late, Embraer reported second-quarter financial results with Earnings per ADS of 53 cents and net revenue of $1,358.6 million. The strong quarterly result was due to the company’s aircraft deliveries of 25 commercial and 23 executive aircraft (20 light jets and 3 large jets).
Defense and Security market presently indicates a favorable scenario for growth going forward. Embraer’s Defense and Security Business strengthened the company’s position over time, as a main supplier of defense and security solutions for the Brazilian government as well as other governments worldwide.
Currently, Embraer’s expansion into the military services in Ghana indicates strategic diversification into the world’s broader defense market.
Embraer’s Defense and Security business involves a series of applications including transportation of military officials and authorities; training and light attack; intelligence, surveillance and reconnaissance systems; aircraft modernization; military transportation; command and control systems and services.
Embraer S.A designs, manufactures and sells aircraft and aviation-related structural parts to the world’s commercial aviation, executive aviation and defense markets. The company’s product portfolio supporting strong customer orders and diversified global footprint, gives a tough competition to its peers, such as Boeing Co. (BA), Lockheed Martin Corporation (LMT), Northrop Grumman Corporation (NOC), etc.
BOEING CO (BA): Free Stock Analysis Report
EMBRAER AIR-ADR (ERJ): Free Stock Analysis Report
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NORTHROP GRUMMN (NOC): Free Stock Analysis Report
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