July 31, 2018 / 10:09 AM / 2 months ago

Embraer falls to $126.5 million loss on fewer deliveries, defense

SAO PAULO (Reuters) - Brazilian planemaker Embraer SA (EMBR3.SA) on Tuesday fell to a second-quarter net loss of $126.5 million (96.10 million pounds) on fewer commercial and executive jet deliveries and a steep drop in revenue at its defense aircraft division.

The Brazilian aviation company Embraer factory is seen in Sao Jose dos Campos, Brazil, July 24, 2018. Picture taken July 24, 2018. REUTERS/Roosevelt Cassio

That missed the $48 million net profit expected by six analysts in a Thomson Reuters survey and was down from a profit of $62 million a year earlier.

Embraer this month reported a 20 percent drop in jet deliveries to airlines, weighing on revenue in its commercial aviation operations.

The unit is set to join a joint venture with Boeing Co (BA.N) under plans expected to close next year.

Its earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 83 percent to $44 million, missing an average forecast of $142.5 million.

Embraer initially reported earnings in Brazilian reais, before releasing its results in U.S. dollars.

The company said consolidated revenue fell by 29 percent to $1.26 billion due to lower deliveries of commercial and executive jets.

Embraer also reported a significant 88 percent decline in defense segment revenue to $34 million hurt by cost base revisions related to its KC-390 development contract.

Reporting by Ana Mano and Marcelo Rochabrun, editing by Louise Heavens

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