EMBRAER reports net loss of USD 126m in Q2 2018

Brazil-based EMBRAER S.A. (NYSE: ERJ) has reported second quarter net loss to shareholders of USD (126.5m) and lost per ADS of USD (0.69), the company said.

Adjusted Net income (excluding deferred income tax and social contribution and special items) for the second quarter 2018 was USD 6.1 million, with Adjusted earnings per ADS of USD 0.03.

Embraer generated USD 47.8 million in Free cash flow in 2Q18, and finished the quarter with total cash of USUSD 3,341.1 million and total debt of USUSD 4,062.3 million, yielding net debt of USUSD 721.2 million.

The company reported EBIT and EBITDA in 2Q18 were USD (17.7) million and USD 44.1 million, respectively, yielding margins of -1.4% and 3.5%. Adjusted EBIT and adjusted EBITDA, excluding the impact of the KC-390 cost base revision, were USD 109.5 million and USUSD 171.3 million, respectively. Adjusted EBIT margin in 2Q18 was 8.7% and adjusted EBITDA margin in the same period was 13.6%. Year-to-date, adjusted EBIT margin for the company was 6.0% and adjusted EBITDA margin was 11.6%, in line with Embraer´s published 2018 guidance ranges of 5-6% for adjusted EBIT and 10-11% for adjusted EBITDA.

In the second quarter 2018, Embraer delivered 28 commercial and 20 executive (15 light and 5 large) jets, compared to the 35 commercial and 24 executive (16 light and 8 large) jets in second quarter 2017.