This excerpt taken from the ERJ 6-K filed Mar 17, 2006.
Liquidity and Capital Resources
Embraers liquidity needs arise principally from research and development, capital expenditures, principal and interest payments on its debt, working capital requirements and distributions to shareholders. Embraer generally relies on funds provided by operations, borrowings under its credit arrangements, cash contributions from risk-sharing partners, advance payments from customers and, to a lesser extent, capital increases to meet these needs. Embraer believes that these sources of funds will be sufficient to fund its future liquidity needs, continue to develop the EMBRAER 170/190 jet family, develop its new business jets for the light and very light segments, make other planned capital expenditures and pay dividends. However, Embraers customers may reschedule deliveries, fail to exercise options or cancel firm orders as a result of the economic downturn and the financial volatility in the airline industry. In addition, Embraers risk-sharing partners cash contributions are refundable under certain limited circumstances and Embraer may need to find replacement sources of capital.