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Montevideo, September 18th 2020 - 14:29 UTC

 

 

Brazil's aircraft manufacturer Embraer, reports losses of US$ 315 million

Thursday, August 6th 2020 - 09:24 UTC
Full article
The hardest hit branch was commercial aviation, down 82.8%  compared with the same period of last year: it delivered only four commercial airliners compared to 26 in 2019 The hardest hit branch was commercial aviation, down 82.8% compared with the same period of last year: it delivered only four commercial airliners compared to 26 in 2019

Brazilian aircraft manufacturer Embraer reported second-quarter losses of US$ 315 million on Wednesday, as sales plunged due to the coronavirus pandemic and a proposed joint venture with Boeing collapsed.

In the second three-month stretch of last year, by comparison, Embraer posted profits of US$7.2 million.

This time the company's hardest hit branch was commercial aviation, which fell 82.8% compared with the same period of last year -- it delivered only four commercial airliners compared to 26 back then.

The company said that due to uncertainty caused by the pandemic it will not be releasing estimates of future finances or plane deliveries.

It also said was “affected negatively” by the collapse of a deal under which Boeing was to have acquired 80% of Embraer's commercial division for US$ 4.2 billion.

Boeing said Embraer had not lived up to terms of the deal but the Brazilian company denied this and said Boeing had acted improperly.

With that deal Boeing had hoped to compete with Airbus and joint venture partner Bombardier of Canada in the market for medium-haul airliners.

Categories: Economy, Investments, Brazil.

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