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Profit of Embraer tumbles 65 percent in first quarter

Staff Writer | May 3, 2017
In Q1 2017, Embraer delivered 18 commercial and 15 executive (11 light and 4 large) jets, representing a decline from the 21 commercial and 23 executive (12 light and 11 large) jet deliveries in Q1 2016.
Embraer   Revenues in Q1 2017 were $1,026.3 million
The company’s firm order backlog ended the quarter at $19.2 billion.

Revenues in Q1 2017 were $1,026.3 million, representing a decline of 21.6% as compared to Q1 2016, due largely to a decline in commercial jet and executive jet deliveries.

Adjusted EBIT and Adjusted EBITDA margins were 3.0% and 10.1%, respectively, in Q1 2017.

Adjusted EBIT and Adjusted EBITDA exclude the impact of $7.6 million in additional provisions related to the company’s voluntary dismissal program.

Q1 2017 Net income attributable to Embraer shareholders and Earnings per ADS were $42.5 million and $0.23, respectively.

Adjusted Net income (excluding the impact of FX-related non-cash deferred income tax and social contribution and the aforementioned provision) for the quarter was $23.2 million, representing Adjusted Earnings per ADS of $0.13 in Q1 2017.

In January, Embraer issued $750 million in principal value of bonds at par, with maturity in 2027 and a coupon rate of 5.4%.

The company finished Q1 2017 with a total cash position of $3,482.0 million and total debt of $4,287.8 million, yielding a net debt position of $805.8 million.

In March, the company announced that it successfully completed the inaugural flight of the first prototype of the E-195 E2 commercial jet, several months ahead of schedule.

All three jet models of the E2 program remain on track for their respective entry into service plans – the E-190 E2 in the first half of 2018, the E-195 E2 in the first half of 2019 and the E-175 E2 in 2021.