Brazilian airframer Embraer reported a $-217.5 million loss for 2019 on March 26,  over four times worse compared to the $-54.2 million loss in the previous year. Net loss attributable to shareholders is even worse at  -322.3 million compared to -178.2 million in 2018. Revenues were $5.462 billion, an improvement on $5.071 billion the year before.

The results were impacted in Q4 by a $71.6 million impairment charge on Executive Jets, higher administrative expenses, and $54.2 million in separation costs as Commercial prepares itself for the joint-venture with Boeing to become Boeing Brasil. Full-year seperation costs mounted to $120.8 million. As a result, Adjusted EBIT for the year was $-5.4 million compared to a positive $223.8 million in 2018. Only Q2 reported a positive operating result.
On January 1, Embraer had $2.780 billion in net cash available, down from $3.207 billion in 2018. Total debt decreased $130.3 million to $3.392 billion.

By segment, Commercial reported lower revenues at $2.234 billion compared to 2.358 billion in 2018. Its share in consolodated revenues dropped from 49.5 percent to 44 percent. As reported earlier on Airinsight, Embraer delivered 89 E-jets, the majority of which were 67 E175s. The backlog stands at 338 airliners, including 181 E175s and 137 E195-E2s.

Executive Jets showed higher revenues to $1.397 billion, up from 1.104 billion, thanks to 109 deliveries that included the new Praetor. Thanks to new contracts in and Europe, and Support saw growth in revenues to $1.046 billion, up from $980 million. Defense and Security generated revenues of $775.3 million compared to $612.1 million.
The company’s total order backlog is worth $16.8 billion compared to 16.2 billion in 2018.

With the (aviation) world concerned about Covid-19, Embraer has withdrawn its previous guidance for this year. The impact of the virus on production has been limited so far, with no extensive on the supply chain. All non-essential work is done from home and staff has been sent on temporary paid leave until March 31.

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