Embraer reports third-quarter net loss of US$77.2 million

In the third quarter 2019 (3Q19), Embraer delivered 17 commercial and 27 executive (15 light and 12 large) jets, compared to 15 commercial jets and 24 executive (17 light and 7 large) jets in the third quarter of 2018 (3Q18). The Company’s firm order backlog at the end of 3Q19 was US$ 16.2 billion; EBIT and EBITDA in 3Q19 were US$(20.8) million and US$18.2 million, respectively, yielding EBIT margin of -1.8% and EBITDA margin of 1.5%.

The quarterly results were impacted by separation costs of US$34.8 million related to the carve out of Embraer’s Commercial Aviation business. In the first nine months of 2019 the Company’s EBIT was US$(9.3) million (EBIT margin of -0.3%) and EBITDA was US$ 116.2 million (EBITDA margin of 3.4%). In the same period separation costs represented US$66.6 million.

3Q19 net loss attributable to Embraer shareholders and loss per ADS were US$(77.2) million and US$(0.42), respectively. Adjusted net loss (excluding deferred income tax and social contribution) for 3Q19 was US$ (48.4) million, with adjusted loss per ADS of US$(0.26). Embraer has reported adjusted net loss in 3Q18 of US$(16.5) million, for an adjusted loss per ADS of US$(0.09) in the quarter. The Company has reported 3Q19 free cash flow of US$(257.4) million, versus free cash flow of US$(162.6) million reported in 3Q18.

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