MercoPress. South Atlantic News Agency

Embraer shares soar as Brazilian aircraft manufacturer shows profits

Gomes Neto explained the “strong” results were due to the firm's strategic planning

Stock of Brazilian aircraft manufacturer Embraer went up as the company showed profits last week worth R $ 438.1 million (US $ 87.9 million) despite the pandemic's impact on the airline industry.

The company recorded a sharp rebound in activity in the second quarter of 2021, which accounted for its successful performance. After the publication, the company's shares climbed above 7% on the São Paulo stock exchange.

In the same period of 2020, Embraer had registered losses for US $ 315.3 million, and even in the first quarter of 2021 it had red numbers for 89.7 million dollars.

Embraer CEO Francisco Gomes Neto explained the “strong” results were due to the firm's strategic planning which resulted in “significant improvements in financial performance.”

Gomes Neto pointed out the company's performance especially in commercial aircraft represented revenues worth US $ 388.5 million, more than three times the number in the second quarter of last year.

Embraer is the third largest aircraft manufacturer in the world behind Airbus and Boeing, has delivered 14 aircraft this year compared to only four in the same period of 2020 and 20 business units against 13 a year ago.

The manufacturer also announced new orders, including for 30 aircraft for Canada's Porter Airlines, with delivery for the second half of 2022. Thus, the order book closed the quarter at $ 15.9 billion, the highest value since the start of the coronavirus crisis.

With higher profitability in all business units, adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) was R $ 837.6 million (US $ 160.7 million) in the second quarter.

Embraer reissued its annual projections, after suspending them due to instability stemming from the health crisis.

The company expects to close the year 2021 with deliveries of between 45 and 50 commercial aircraft and between 90 and 95 executive ones, and consolidated net revenues between US $ 4 billion and US $ 4.5 billion.

The manufacturer also announced its commitment to achieve carbon neutral operations by 2040.

In 2020, Embraer had significant losses due to the pandemic and a merger deal with Boeing for US $ 4.2 billion failed to materialize.