Sao Paulo - Embraer admits that the revenue and profit this year might suffer during the transition to the new generation E2 jets because of the deceleration of deliveries and capital consumption.

Embraer's first performance outlook for 2018 was announced after the company posted a net profit of 351 million reais ($110 million) in the third quarter.

The result shows a recovery from the net loss of 111.4 million reais recorded in the third quarter of 2016, when the company recorded extraordinary costs related to a lawsuit in the United States and Brazil on corruption.

The world's third-largest commercial aircraft manufacturer said its revenue before taxes rose to 443 million reais in the third quarter from 174 million reais in the same period last year.

The challenging outlook for 2018 highlights how much the company depends on its new generation jets, which will compete with the CSeries of Bombardier.

Embraer expects 2018 to be a transition year, with the entry into operation of the first E2 model, the E190-E2, coupled with a still stable market in the Executive Aviation and Defense & Security segments.

Embraer projects a steady demand for executive jets, delivering 105 to 125 aircraft in 2018. Embraer also expects a reduction in commercial jet deliveries in 85 to 95 aircraft, compared with a delivery forecast of 97 to 102 commercial aircraft for this year.

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