Brazil’s Embraer sticks to 2022 forecasts as Q2 net profit falls
2022.08.04 14:50
FILE PHOTO: The logo of Brazilian planemaker Embraer SA is seen at the company’s headquarters in Sao Jose dos Campos, Brazil February 28, 2018. REUTERS/Roosevelt Cassio
SAO PAULO (Reuters) – Brazilian planemaker Embraer SA (NYSE:ERJ) on Thursday posted a second-quarter adjusted net profit down 9.6% from a year earlier, but reaffirmed all aspects of its financial and delivery outlooks for 2022.
Embraer’s quarterly adjusted net income reached $39.4 million, recovering from the $78.5 million net loss seen in the previous quarter, driven by its product mix and price hikes, according to a securities filing.
The company stuck to its previously announced full-year forecasts, with revenue seen reaching between $4.5 billion and $5 billion and deliveries projected at 100 to 110 executive jets and 60 to 70 commercial jets.
Quarterly revenue came in at $1.02 billion, also down roughly 10% amid lower deliveries in its Commercial and Defense & Security units, which were partially offset by higher revenues in Services & Support.
Embraer, the world’s No. 3 planemaker behind Boeing (NYSE:BA) Co and Airbus SE (OTC:EADSY), also highlighted a 102% free cash flow improvement to $91.2 million, citing the divestment from its Evora facilities in Portugal and the initial public offering of its electric aircraft unit Eve Holding Inc.
Embraer had already reported that second-quarter deliveries totaled 32 jets, including 11 commercial aircraft and 21 executive jets – falling just shy of the 34 jets delivered in the same period last year but gaining pace after a lukewarm first quarter.
The company initially filed results in Brazilian reais before reporting its earnings in U.S. dollars.
($1 = 5.2835 reais)
