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The Brazilian jet maker Embraer SA (ERJ - Analyst Report) reported solid delivery figures for second-quarter 2014. The company has delivered a total of 58 jets, up 70.6% sequentially and 13.7% year over year.

The commercial aviation and the business aviation markets were delivered 29 jets each. Under the commercial aviation, Embraer provided 16 of E-175s, 8 E-190s and 5 E-195s while the rest were delivered to business aviation inclusive of 22 Light and 7 Large jets.

The outperformance was primarily driven by 100% sequential surge in both E-175 and E-190 aircraft deliveries. In addition, strong contributions from the E-195 and Light as well as Large jets also acted as catalysts for growth in delivery. During the second quarter, Embraer has made first deliveries for its E-175 aircraft with the upgrade of aerodynamic. The company delivered improvised E-175 aircraft to several U.S. companies, including Republic Airways, SkyWest and United Airlines.

As on Jun 30, 2014, Embraer had a firm order backlog of $18.1 billion. In terms of aircraft breakdown, the company’s order backlog comprises 167 E-175s, 100 E-175-E2s, 62 E-190s, 50 E-195-E2s, 50 E-190-E2s and 11 E-195s jet.

Under the second quarter backlog, Embraer’s significant contracts include delivery of 60 E-175s to the American Airlines and 100 E-175-E2s to Skywest. Higher aircraft demand from the U.S. firms primarily boosted the company’s current backlog.

Meanwhile, Embraer announced that it has won a contract from Trans States Holdings to deliver 50 E175-E2 aircraft. The agreement has options for an additional 50 units, taking the total order potential to 100 aircraft. The deal is valued at around $2.4 billion at list prices, subject to certain conditions.

Embraer has already launched the second generation of its E-Jets family of commercial aircraft, E2, including three new aircraft E175-E2, E190-E2 and E195-E2. The second generation of E-Jets would improve fuel burn and reduce maintenance costs in the double digits. Indeed, E-Jets E2 burn at least 16% less fuel per seat with E-195 specifically burning 23% less fuel. In addition, the E2 category jet has higher number of seats. These positive factors are expected to help Embraer to gain more orders in the future.

Embraer is the world's third largest commercial aircraft manufacturer after The Boeing Co. (BA - Analyst Report) and Airbus. The company designs, manufactures and sells aircraft and systems under both commercial as well as executive aviation, and defense and security segments.

Embraer currently has a Zacks Rank #2 (Buy). Other stocks in the same industry looking equally good include Huntington Ingalls Industries, Inc. (HII - Snapshot Report) and Leidos Holdings, Inc. (LDOS - Snapshot Report). Both the stocks carry a Zacks Rank #2 (Buy).

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