Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

4 of 6
BACK NEXT
Empresa Brasileira de Aeronáutica S.A. (Embraer)
Headquarters: São José dos Campos, Brazil
U.S. Ticker: ERJ (NYSE)
P/E (2008 est.): 14.2

Brazilian aircraft maker Embraer is well positioned to benefit from demand for mid-sized jets.

With the price of jet fuel skyrocketing, airlines need to purchase lighter and more fuel efficient jets. As such, Embraer could sell up to 45 jets in the first quarter of 2008, according to research from Bear Stearns. Analysts expect Embraer's earnings to grow about 12.5% this year.

Like other manufacturers, Embraer is getting squeezed by higher materials costs. They're also being hurt by the strengthening of Brazil's currency, the real, since its aircraft are sold in U.S. dollars but its workers are paid in real.

Despite the challenges, the company has managed to crank up production and increase efficiency. Embraer has an order backlog of about $19 billion. That's over 3 years worth of revenues, according to Richard Tortoriello of Standard & Poor's.

NEXT: InterContinental Hotels Group PLC

Last updated June 20 2008: 1:19 PM ET
More Galleries
15 cool cars for sale at Pebble Beach While these events are best known for seven-figure classics, just about everything crosses the block at Pebble Beach. More
Great-looking cars on a budget It's not easy to wrap great looks around a small, inexpensive car. But the designers behind these five models totally nailed it. More
New York tops London as most expensive city after Brexit vote London is now cheaper than New York and Hong Kong, according to Savills' latest ranking of residential and office rental costs. More

Special Offer