A rendering of Embraer's upcoming Fort Worth, Texas MRO facility.
Brazilian aircraft manufacturer Embraer has blamed supply chain problems for lowering its delivery forecast from 80 commercial aircraft for the year to 70-73.
CEO Francisco Neto said that supply challenges centered on certain engine component and structural parts for the E2 line.
To address the problems, Embraer has created a team to focus on the most critical elements of the supply chain and has implemented digital solutions to improve forecasting of parts and tighten its relationships with suppliers.
During the third quarter, Embraer’s services and support revenue climbed 16% year on year to $426 million, which the OEM said was “underpinned by higher fleet utilization and MRO ramp-up.”
Pre-tax profit for the division reached $80 million. Services and support also won significant contracts during the period, raising its backlog by about $350 million to $3.5 billion.
To maintain this growth, the company has assigned significant capital expenditure to its services and support operations over the next few years. This includes $90 million during 2021-25 at Portuguese subsidiary OGMA for a new line for Pratt & Whitney PW1100 and PW1900 engines, with a start of operations this year and a full ramp-up by 2028.
Embraer will also invest $70 million between 2025-26 in Fort Worth, Texas to increase its commercial aviation MRO footprint in North America by 50%.
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