Embraer releases third quarter 2016 results

During 3Q16, Embraer delivered 29 commercial jets and 25 executive jets (13 light and 12 large). The Company’s firm order backlog ended the quarter at US$21.4bn versus US$21.9bn in 2Q16. Revenues in 3Q16 grew 17.9% on a year-over-year basis to US$1,514.3m, driven by higher revenues in the Commercial Aviation and Defense & Security segments. Consolidated gross margin in 3Q16 was 18.8%, an increase from the 17.5% registered in 3Q15. In 3Q16, the Company booked in Other operating income (expense), net an additional US$5.5m loss contingency related to finalization of negotiations related to the U.S. Foreign Corrupt Practices Act (FCPA), and a US$118.1m provision related to costs for the first round of voluntary dismissal. Adjusted EBIT and Adjusted EBIT margin in 3Q16, excluding the impacts of the loss contingency and provision listed above, were US$94.7m and 6.3%, respectively. Adjusted EBITDA and Adjusted EBITDA margin in the quarter, excluding these impacts, were US$187.3m and 12.4%, respectively. 3Q16 Net loss attributable to Embraer Shareholders and Loss per basic ADS totaled US$ (33.7) million and US$ (0.1848), respectively.