Brazil Transportation Stocks
EMBRAER - Empresa Brasileira de Aeronutica S.A. (ERJ) is the largest exporter in Brazil, and third largest in terms of yearly commercial aircraft delivery and fourth largest workforce among all aircraft manufacturers. The company has its headquarters, production facilities and design offices in Sao Jose dos Campos, Sao Paulo. Currently, the company has maintenance and commercial sites in several countries around the world, including the United States, Singapore, China and France.
As of 2007, the company employed 23,770 people.
The company primarily develops commercial aircraft, along with being the supplier of defense aircraft to the Brazilian Air Force. In addition, the company has sold planes to the military forces of Europe, Asia and Latin America.
The commercial aviation segment of the company includes developing, producing and marketing jets for the airline industry worldwide. The company’s products are organized into the ERJ 145 family, the Embraer 170/190 family and the EMB 120 Brasilia family. In total, sales of commercial aviation amounted to 64.4 percent of the company’s business.
The company also develops defense and government planes, including the production, modification and support of military aircraft. The company has the Super Tucano for defense and the attack aircraft know as the AL-X. The AMX is a ground attack jet. In total, the company’s defense and government business sector accounts for six percent of the total sales of the company.
The executive jet segment of the company consists of the Legacy 600, Phenom 100, Phenom 300 and Lineage 1000. In total, this market for the company comprises 15.3 percent of the net sales.
The stock has a P/E of 23 and a PEG of 1.64.
GOL Linhas Areas Inteligentes S.A. (GOL) is a low cost airline which is the second largest airline in Brazil, with 38.6 percent of the domestic market in the country, and 12.2 percent of the market from Brazil to other countries.
Ir owns the Varig airline, and has its main hubs located at the Sao Paulo’s Congonhas International Airport, Rio de Janeiro’s Galeao International Airport, Brasilia International Airport, as well as operations at Rio de Janeiro’s Santo Dumont Airport, Sao Paulo’s Guarulhos International Airport and Porto Alegre’s Salgado Filho International Airport. The company currently employs 5,456 staff.
The company offers 630 daily flights to 58 destinations across Brazil, as well as destination in Argentina, Bolivia, Chili, Paraguay, Peru and Uruguay through its VRG Linhas Aereas brand. Through the Gol Transportes Aereos brand, it provides service to 12 destinations, through 120 flights, consisting of Brasilia, Belo Horizonte, Curitiba, Fortaleza, Fernando de Noronha, Florianopolis, Manaus, Porto Alegre, Recife, Rio de Janeiro, Salvador and Sao Paulo.
The stock has a P/E of 14, a PEG of 1.67, and pays a yield of 2.5%.
TAM S.A. (TAM) is an airline that provides air transportation within Brazil, as well as internationally, through its subsidiaries, TAM Linhas Aereas and Transport Aereos del Mercosur. The company currently flies to 48 cities in Brazil itself, while 26 more destinations are served through alliances with other airlines. The company also flies passengers and cargo to 12 international destinations.
In 2006, the company flew 22.9 million passengers on domestic flights, and 2.6 million on international flights. The company has a leased fleet of aircraft, which includes models such as the A330, A320 and A319.
The cargo operations of the company account for 6.3 percent of the company’s gross revenue, which includes express package, conventional cargo and special transportation delivery. The company picks up packages in 400 Brazilian cities, and transports them to 3,450 locations in the country.
The stock has a P/E of 37, a PEG of 0.84, and a yield of 2%.
Iochpe Maxion (IOCJY.PK) is an auto and truck parts and transportation equipment manufacturer. The net profit margin is 8.45% and a return on average equity of 39.5%.
Obrascon Huarte Lain Brazil (OBSJF.PK) manages highways that are located in Sao Paulo. The stock has a net profit margin of 15.98% and a return on average equity of 15.54%.
Other Brazil stock industries include the Brazil food stocks, Brazil natural resources stocks, Brazil financial companies, Brazilian telecommunications companies, Brazil Utility Stocks, and don't forget to check out the Gisele Bundchen stock index.
Author does not own any of the above.
By Fred Fuld at Stockerblog.com