Brazil’s Embraer posts $12.3m loss as sales ease

Losses compared to profits of $53m in the same period last year

Brazil’s Embraer, the third biggest aircraft manufacturer in the world, posted a first quarter loss of $12.3 million (Dh45.14 million) yesterday, also saying that a much-anticipated tieup with Boeing is still up in the air.

The losses compared to profits of $53 million in the same period last year. Earnings before interest, taxes, depreciation and amortisation, or Ebitda, were $89.5 million, down from $113 million.

The company delivered 14 commercial planes and 11 executive jets in the January to March period, a slowdown from last year when 18 commercial and 15 executive planes were delivered, the company said in a statement.

Founded as a state group in 1969, Embraer was privatised in 1994 and offers a range of civil and military aircraft as well as business jets. The Brazilian government retains a “golden share” in making strategic decisions for the company.

US giant Boeing and Embraer have been in talks to combine their operations, which would reportedly see Boeing holding most of the company.

Defence activities and possibly also the executive jets branch would be excluded from the merger, Embraer said.