Embraer posts third quarter net income of US$110m

During the third quarter 2017, Embraer delivered 25 commercial jets and 20 executive jets (13 light and 7 large);
The Company’s firm order backlog at the end of the third quarter was US$18.8bn, representing an increase from the US$18.5bn reported at the end of 2Q17. Consolidated revenues were US$1,310.4m, representing a decline of 13.5% compared to the third quarter in 2016, due to lower deliveries in the Commercial Aviation and Executive Jets segments. Adjusted EBIT and Adjusted EBITDA margins were 5.3% and 10.9%, respectively. Adjusted EBIT and Adjusted EBITDA exclude US$3.6m in net non-recurring charges in the third quarter 2017. Net income attributable to Embraer shareholders and Earnings per ADS were US$110.0m and US$0.60, respectively. Adjusted Net income (excluding the impact of FX-related non-cash deferred income tax and social contribution and non-recurring items) for the quarter was US$75.2m, representing Adjusted Earnings per ADS of US$0.41. Embraer expects 2018 to be a transition year due to the entry into service of the first E2 model, the E190-E2, combined with a still flattish market for Executive Jets and Defense & Security. In this transition scenario of ramp-up costs for the initial E2 deliveries, the Company releases 2018 Outlook for total revenues of US$5.3 to US$6.0bn, with deliveries of 85 to 95 jets in Commercial Aviation and 105 to 125 jets in Executive Jets. Consolidated EBIT margin is expected to be within a range of 5.0% to 6.0%, and Guidance for Free Cash Flow is for a usage of US$(150)m or better for 2018.