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Brazil's Embraer registers over one-bln-USD deficit

Xinhua, July 30, 2016 Adjust font size:

Brazil's aircraft manufacturer Embraer said Friday that it registered a deficit of 3.373 billion reais (around 1.023 billion U.S. dollars) in the second quarter of 2016.

The firm explained through a press release that the deficit contrasted with the 3.996 billion reais (around 1.212 billion U.S. dollars) it obtained in profit during the same period in 2015.

According to the company, the gross operating profit, known as earnings before interest, taxes, depreciation and amortization, was negative in 153 million reais (around 46.4 million U.S. dollars) in the second quarter.

This amount was far below the 5.482 billion reais (around 1.663 billion U.S. dollars) from the same period in 2015.

Embraer accumulated a net profit of 49.3 million reais (around 14.9 million U.S. dollars) in the first half of 2016, 77.3 percent less than the same period of 2015.

The company's order book closed in June with a value of 21.9 billion U.S. dollars, 4.3 percent lower than the same period in 2015 and the same as the the first quarter of 2016.

The world's third largest aircraft manufacturer, behind Boeing and Airbus, delivered 52 aircrafts in the second quarter - 26 commercial and 26 executive.

The company contemplates handing over between 105 and 110 commercial planes this year as well as 105 to 125 executive aircrafts.

"The business scenario in the executive planes sector has proven to be more difficult than expected this year, with continuous pressure on new aircraft sales, due to the high inventories of used planes and a highly competitive environment," said Embraer.

Embraer added that as a consequence, the company has adopted a more cautious strategy "for its delivery goals of these aircrafts in 2016."

The company will also look to increase profitability in the coming quarters, "adjusting costs for the current level of demand."

The investment estimations remain the same for all of 2016: 50 million U.S. dollars in investigation, 325 million in development and 275 million in investment expenditures. Enditem