Embraer: From a Painful Boeing Breakup to a Future Based on Innovation
Speaking at the Embraer Media Day 2022 event in Sao José dos Campos, the Brazilian company’s CEO, Francisco Gomes Neto, said that the non-conclusion of the agreement with Boeing caused “suffering,” given that Embraer had prepared for it.
“We started to reintegrate Embraer Commercial. It was a painful and expensive process but we are now ready in all aspects,” he added.
Despite this, and along with the crisis caused by the pandemic, he assured that the company recovered quickly and sought business continuity, with a focus on ensuring cash flow.
“In 2020 we knew that the crisis was going to end sometime. We created a 5-year strategic plan to follow a path of sustainable growth,” said Gomes Neto.
Last year the picture changed, and the manufacturer moved towards recovery, having achieved a positive financial result, with an EBIT of USD 260 million, and a strong focus on sales that made possible a backlog of USD 17 billion. 2022, like 2021, remains a year of recovery, but not free of challenges, such as inflation, which he said affects the entire industry and for which they are looking for tools to mitigate it.
He also added that difficulties in supply chains make it difficult to reduce the footprint, but that they will make progress in this regard. On the other hand, the 2023-2026 period will be the period of return to growth.
This will be possible based on five pillars, said Gomes Neto: increasing the sales portfolio; achieving more efficiency in the company through aspects such as higher inventory turns, production cycle reduction, cost of goods sold reduction, focus on productivity, footprint optimization and strong cash generation; achieving strategic partnerships, where he gave Eve as an example, a company that also had good results in 2021; innovation, which he referred to as the main driver of growth and which was responsible for 40% of revenue in the last five years; ESG initiatives as generators of good opportunities; and safety and quality above all else, both for its employees and for customers.
Aviacionline is participating in Embraer Media Day 2022. You can follow this week’s coverage from Sao José dos Campos, Brazil, both on the website and on our social networks.
This story was originally published by Pablo Diaz on Aviacionline in syndication with AirlineGeeks.com.