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 Aviation 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 Aviation 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 Africa and Europe, Services 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With the (aviation) world concerned about Covid-19, Embraer has withdrawn its previous guidance for this year.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 delays on the supply chain. All non-essential work is done from home and staff has been sent on temporary paid leave until March 31.