Embraer posts second quarter 2016 results

In 2Q16, Embraer delivered 26 commercial and 26 executive (23 light and 3 large) jets. The Company’s firm order backlog ended the quarter at US$21.9bn, compared to US$22.9bn at the end of 2Q15 and US$21.9bn in backlog at the end of 1Q16. Revenues in 2Q16 were US$1,366.4m, representing a decline of 9.7% from the same period last year, principally due to lower deliveries in the Executive Jets segment. Consolidated gross margin in 2Q16 reached 20.8%, up from the 18.9% registered in 2Q15. In 2Q16, the Company booked a US$-200m loss contingency in other operating income (expense), net related to the allegations of non-compliance with the U.S. Foreign Corrupt Practices Act (FCPA). Adjusted EBIT and Adjusted EBIT margin in 2Q16, excluding the impact of the loss contingency, was US$72.6m and 5.3%, respectively. Adjusted EBITDA and Adjusted EBITDA margin in the quarter, excluding this impact, was US$152.3m and 11.1%, respectively. Embraer’s 2Q16 net loss totaled US$-99.4m.