Abu Dhabi, UAEFriday 18 October 2019

Embraer flies back into profit in second quarter

But Brazilian plane maker does not see itself posting a profit by the end of the year, it says, reaffirming previous guidance

A British Airways E190 Embraer. The Brazilian plane maker swung to a profit in Q2. AFP
A British Airways E190 Embraer. The Brazilian plane maker swung to a profit in Q2. AFP

Brazilian plane maker Embraer on Wednesday swung to a $7.2 million (Dh26.44m) profit in the second quarter, as higher revenue at its executive jets business helped offset lower commercial jet sales.

The company reported a loss of $131m a year earlier.

Embraer, however, does not see itself posting a profit by the end of the year, the company said, reaffirming previous guidance. The plane maker posted a full-year loss in 2018.

The company's recent struggles to turn consistent profits have raised questions about the company's results in the future because it is in the midst of selling 80 per cent of its commercial aviation division, historically its most profitable, to Boeing.

Embraer expects that transaction to close by the end of the year, after which it will have to rely on its remaining divisions, executive jets and defence contracting, to drive most of its bottom line.

During the first six months of the year, Embraer posted operational losses in its commercial, executive and defense divisions.

Embraer said it expects to deliver its first new cargo military plane, known as the KC-390, to the Brazilian government by the end of the year.

The Brazilian company and Boeing have signed a separate deal to jointly market the plane, which Embaer hopes will draw orders from governments which are allies of the United States.

Updated: August 14, 2019 03:34 PM

SHARE

SHARE