Brazilian Embraer loses $292 million during virus-infected quarter

Agence France-Presse

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Brazilian Embraer loses $292 million during virus-infected quarter
Embraer, the world's 3rd largest airplane manufacturer, is affected by the coronavirus pandemic and also by expenses incurred from a scrapped takeover by Boeing

RIO DE JANEIRO, Brazil – Brazilian airplane manufacturer Embraer revealed on Monday, June 1, it lost $292 million in the 1st quarter of 2020, 6 times more than for the same period last year.

The company has been affected by a drop in business due to the coronavirus pandemic, but also by the expenses incurred from a proposed takeover by American rival Boeing, which in April pulled out of the $4.2-billion deal.

Embraer is the 3rd largest airplane manufacturer in the world after Airbus and Boeing, but had already lost $322 million in 2019, including $210 million in the final quarter.

From January to March, Embraer delivered 5 commercial jets and 9 executive jets, well down on the 22 in total from the same period in 2019.

In a statement released on Monday, Embraer said it had placed most of its Brazil-based employees on paid leave due to the coronavirus pandemic.

Despite the announcement, Embraer’s shares rose 2% on the Sao Paulo stock exchange by midday.

The entire airline sector was on the rise following two months of catastrophic losses over the virus outbreak.

Embraer’s shares have already lost 60% of their value this year, a situation exacerbated by the collapsed Boeing takeover.

Shares briefly plunged 15% after Boeing pulled out of the deal, “wrongfully” according to Embraer. – Rappler.com

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