Brazil’s Embraer cut its losses by 93% last year

Rio de Janeiro, March 9 (EFE). – Brazilian aircraft manufacturer Embraer incurred losses of 162.6 million reais (about $32.5 million) last year, a value about fifteen times less than that recorded in 2020, thanks to increased sales, shipments and parcels, the company said on Wednesday.

Embraer, the third largest aircraft manufacturer in the world and a leader in the aircraft sector for regional flights, recorded losses of 2372.3 million riyals (about 474.5 million dollars) in 2020 due to the serious crisis in the aviation sector due to the outbreak of the Covid-19 epidemic. This reduced parcels and deliveries.

The recovery of the air sector last year, with most flights reactivating, allowed the Brazilian airline to record losses of 93.2% less than the losses of the previous year.

The company reported that last year it delivered 141 aircraft to its customers (48 commercial and 93 executive), with which it regained part of what it lost in 2020, when its shipments were reduced to 130 aircraft (44 commercial and 86 executive). Deliveries in 2019, prior to the pandemic, were 198 devices.

This recovery allowed Embraer’s turnover to increase by 15.4%, from 19641.8 million riyals (about $3928.4 million) in 2020 to 22669.7 million riyals (about $4533.9 million) in 2021.

Similarly, the adjusted gross operating product (Ebitda) more than quadrupled, from 437.6 million riyals (about $87.5 million) in 2020 to 1946.3 million riyals (about $389.26 million). last year.

The company explained in the statement it sent to the market that its portfolio of signature parcels amounted to 17,000 million riyals last December, the highest level since the second quarter of 2018, “driven by a steady level of parcels, especially in the executive and commercial aviation sectors.

Embraer also highlighted that due to the increase in orders, the ratio between sales and delivery remained above 2/1 in the commercial and executive aircraft segments.

According to Embraer, sales were within the company’s expectations, which would have closed the year with a turnover of between $4,000 and $4,500 million.

Regarding its forecasts for 2022, the company said it calculates that it will deliver between 60 and 70 commercial aircraft and between 100 and 110 executive aircraft, which will have sales between 4,500 and 5,000 million dollars.

The company also highlighted that it reduced its liquid debts from 8,811 million riyals (about 1,762.2 million dollars) in December 2020 to 7,768.6 million riyals (about 1,553.6 million dollars) at the end of 2021.

The reduction in the debt was much greater compared to that accumulated until last September, as it amounted to 9810.8 million riyals (about 1962.16 million dollars).

In the good results of last year, the performance of the last quarter contributed in particular, when Embraer recorded a net profit of 327.2 million riyals (about 65.4 million dollars), which is more than reversing the losses of 179.7 million riyals (about 35.9 million dollars). Suffered in the third quarter.

The profits of the last three months of 2021 also exceeded losses of 70.3 million riyals (about 14 million dollars) in the fourth quarter of 2020. EFE

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