July 31, 2018 / 10:09 AM / 9 months ago

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

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

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.

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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