Go To Top
Embraer E175-2 Skywest

 

28th July, 2017

Embraer SA returned to profit in the second quarter as the Brazilian aircraft manufacturer ramped up deliveries of narrow body E-Jets to airlines and brought down operating costs through job cuts and controls on corporate expenses.

The world's third-largest commercial planemaker reported a profit of US$59 million on Friday. Removing the impact of a weaker Brazilian currency on Embraer's deferred tax bill, net income would have jumped to US$123 million. In the second quarter 2017, Embraer delivered 35 commercial and 24 executive jets. The Company’s firm order backlog ended the quarter at US$18.5 billion;

Last year Embraer booked a US$99 million second-quarter net loss, due to a corruption probe that culminated in a US$206 million settlement with U.S. and Brazilian authorities. On Friday the company said it had filed a motion to dismiss a class action suit related to the case, which the court had not yet ruled on.

The company's strongest quarter for deliveries to airlines in five years lifted revenue 30 percent from a year ago to US$1.77 billion. A delayed satellite launch and solid demand for new mid-size Legacy business jets also boosted Embraer's top line.

Recurring operating costs fell 36 percent due to a cost-cutting drive that reduced staffing levels and clamped down on corporate expenses, part of Chief Executive Paulo Cesar Silva's effort to cut US$200 million from the company's annual budget.

 Core earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to US$255 million, from negative EBITDA of US$56 million a year earlier. Embraer also reaffirmed all of its 2017 operational and financial performance estimates.

Latest News

  • Casas Bahia store

     

    27th March, 2018

    Amazon.com and Casino Guichard Perrachon are negotiating a deal in Brazil either partnering or selling the French retailer’s local appliance and electronics chain, a source familiar with the talks said on Tuesday.

  • Shopping mall in Brazil

    19th February, 2018

    Economic activity in Brazil expanded at a faster-than-expected pace in December, capping the first annual increase in four years following the deepest recession in decades.

  • Marcio Appel

     

    7th February, 2018

    Marcio Appel, a 45-year-old money manager whose main fund topped 89 percent of its peers in the past year, is betting on Brazil’s benchmark stock index to double over the next 12 months.

  • Embraer Boeing logos

     

    6th February, 2018

    Boeing has presented a plan to Brazil’s government that would give it an 80 to 90 percent stake in a new venture encompassing Embraer’s commercial jet business, a Brazilian newspaper reported on Tuesday.

  • Didi 99

    3rd January, 2018

    A year after buying a minority stake in Brazilian app 99 - owner of the second most used transportation application in the country, behind Uber -, the Chinese company Didi Chuxing, founded and run by businessman Cheng Wei, closed the acquisition of the Brazilian company at a valuation of R$3.25 billion (US$1 billion).

  • Estacao Hack

     

    28th August, 2017

    Facebook Inc on Monday unveiled its first training centre in Latin America for coders and entrepreneurs, encouraging technology careers for young Brazilians saddled with unemployment after a deep economic crisis.

  • EletroBras logo

     

    23rd August, 2017

    Brazil on Monday floated a proposal to cede control of the country's biggest power utility, Eletrobras, in the boldest privatisation yet by a government struggling to close a record budget deficit, sending Eletrobras' shares soaring in after-market trading.

  • AT&T Time Warner merger

     

    22nd August, 2017

    Brazil’s antitrust watchdog Cade said AT&T’s US$85.4 billion deal for Time Warner poses a high risk to competition, a potential complication that threatens to delay the final approval process.

  • Magazine Luiza's Lu

     

    14th August, 2017

    Lu’s not like other girls on Tinder. For starters, she’s an avatar. The digital saleswoman popped up on the dating app last June, offering coupons as part of Brazilian retailer Magazine Luiza SA’s strategy to boost e-commerce. She’s been surprisingly effective, lifting the company’s online sales by almost five times the pace of the overall market in the first half of the year and helping make Magazine Luiza the world’s best-performing major retail stock.

  • Embraer E175-2 Skywest

     

    28th July, 2017

    Embraer SA returned to profit in the second quarter as the Brazilian aircraft manufacturer ramped up deliveries of narrow body E-Jets to airlines and brought down operating costs through job cuts and controls on corporate expenses.