Sun. Mar 29th, 2020

Brazilian Embraer doubles losses in 2019

The Brazilian company Embraer, the third largest aircraft manufacturer in the world, recorded losses of 1,294 million reais (about 258 million dollars, 236 million euros) in 2019, more than double that in 2018 (643 million reais or 128 million dollars), the company reported Thursday.

The aeronautical constructor attributed the high losses to the lower operating result and the increase in taxes in the period, according to a statement sent to the market, in which it announced that it has suspended the 2020 forecasts due to the uncertainty generated by the coronavirus.

Despite the drop in net profit, the company’s gross income increased by 16.4% to 21,802 million reais (about 4,360 million dollars, 3,987 million euros), driven mainly by the exchange rate variation and the increase of the turnover in the areas of Defense and Security (39%), Executive Aviation (35%) and Services and Support (16%).

On the other hand, gross operating profit (ebitda) plummeted 57.5%, to 431.4 million reais (about 86.2 million dollars, 79 million euros).

Public debt, for its part, grew by 44% and reached 2,468.4 million reais (about $ 493.6 million) at the end of 2019.

Embraer, the world market leader in aircraft for regional flights, delivered 89 commercial and 109 executive aircraft to its clients, compared to the 90 commercial and 91 executive aircraft it dispatched in 2018.

According to the company, the firm’s backlog of orders totaled $ 16.8 billion at the end of last year.

In the statement, Embraer stated that so far it has not suffered delays in its parts chain, manufacturing operation or “relevant” impacts on the demand for its products as a result of the coronavirus crisis.

However, he specified that he suspended the projections of the results for 2020 “due to the uncertainty related to the impact of the spread of the virus.”

“Should measures taken around the world in an attempt to slow down the spread of the virus persist, the global economy will be negatively impacted, which may negatively impact Embraer,” the company said in the note.

“We cannot guarantee, at this time, to what extent that virus and the measures to try to contain it will affect the company,” he stressed.


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