Embraer has delivered seven commercial jets and 21 executive jets (19 light / two large) in the third quarter of 2020 (3Q20), and the company’s firm order backlog at the end of the quarter was US$15.1 billion.
Excluding special items, adjusted EBIT and EBITDA were US$(45.3) million and US$(0.6) million, respectively, negatively impacted by weak commercial aviation results, yielding adjusted EBIT margin of -6.0% and adjusted EBITDA margin of -0.1%;
The 3Q20 results include total net positive special items of US$7.6 million: 1) restructuring expenses of US$54.0 million related to the voluntary and non-voluntary dismissal programs announced in September, 2) negative provisions for expected credit losses during the Covid-19 pandemic of US$13.0 million, 3) reversal of previous impairment in the executive jets business which positively impacted results by US$15.9 million, and 4) reversal of previous impairment in the Commercial Aviation business which positively impacted results by US$58.7 million;
Adjusted net loss (excluding special items and deferred income tax and social contribution) in 3Q20 was US$(148.3) million, with adjusted loss per ADS of US$(0.81);
Embraer reported Free cash flow of US$(566.5) million in 3Q20, still affected by working capital increases (particularly higher inventories) largely in commercial aviation.
