Business

Embraer sees profits slide but forecasts higher revenue

Embraer jet
Image caption Embraer said it expected higher profits in 2011 despite fewer plane deliveries

Brazil's Embraer, one of the world's largest aeroplane makers, has reported a fall in profits in 2010 and forecast fewer deliveries this year.

Net profit came in at $345.4m (£214.3m) compared with $478.9m a year earlier. Revenue fell slightly to $5.36bn.

The firm warned that unrest in the Middle East and the Japanese earthquake could undermine the industry's recovery and could lead to fewer jet deliveries.

However, it said it expected revenue to rise to $5.6bn in 2011.

The firm delivered 246 aircraft in 2010, but forecast 220 deliveries this year.

But it said that despite the recent appreciation in the Brazilian real, and a rise in wages of about 10% following a settlement with unions at the end of last year, it expected earnings to grow in 2011.

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