MercoPress. South Atlantic News Agency

Brazil jet-maker cuts delivery target

Shares of Brazil's Embraer, the world's fourth-largest commercial jet manufacturer, fell on Thursday after it cut its aircraft delivery targets for this year and next.

Embraer's American depository receipts (ADRs) in New York fell 13 per cent to $10.96 by noon.

The manufacturer reduced its delivery forecast from 148 to 136 aircraft this year and from 155 to 140 next year, weakening its revenue outlook for both years.

The move came after ExpressJet, the US regional air carrier partner to Continental Airlines, requested part of its outstanding order of 86 aircraft to be delayed.

While the delays affected only 8 per cent of its anticipated aircraft deliveries this year and only a fraction of total orders, the announcement raised concern among investors that more delays or even cuts in orders could follow.

Embraer said ExpressJet's request was a result of "economic uncertainties and the unfavourable scenario faced by airlines".

The latest delivery delays are a setback after Embraer had managed to offset some of the impact of the global aviation crisis with new business in countries such as Poland and India. Last December, Embraer expanded its foothold in China by launching an assembly plant in a joint venture with China Aviation Industry Corporation II.

The company for years has been locked in a bitter trade dispute with Canada's Bombardier over export financing from their respective governments.

Brazil's second-largest exporter had firm orders worth US$9bn and an additional US$13.2bn in optional orders as of last December.