Brazilian aircraft maker Embraer, the third largest in the sector in the world, announced on Monday that it recorded a net loss of 1.276 billion reais (US $ 237 million) in the first quarter, a jump of 694% compared to the same period 2019.
The end of the joint venture agreement with the American company Boeing and the effects of the COVID-19 pandemic put pressure on the results of the first quarter.
Embraer’s president, Francisco Gomes Neto, stated that the Brazilian company based in São José Dos Campos, state of São Paulo (southeast), is considering the possibility of finding new partners after Boeing has given up on the deal.
“We are reviewing our strategy for the next five years and, undoubtedly, there is room for initiatives by potential societies, including in the manufacturing area, but it is still too early,” commented Gomes Neto.
According to a statement released by the company on the São Paulo Stock Exchange, the impact of the coronavirus crisis came due to the fall in the value of the American company Republic Airways Holding, in which Embraer has a stake.
According to the company, another reason for the negative results was the costs of separating the businesses related to the strategic partnership with Boeing that started in January. The American manufacturer terminated the negotiations last April.
Despite the losses, Embraer said in the statement that “the company’s liquidity remains solid”, having closed March with US $ 2.5 billion in cash.
In a conference call with journalists, the executive financial vice president, Antônio Garcia, emphasized that Embraer continues to negotiate new lines of financing to protect itself from the effects of the coronavirus pandemic in a very affected sector, such as tourism and business travel.
“Nevertheless, we did not have order cancellations,” explained Garcia.
According to the executive, the horizon of a scenario related to the pandemic is positive for the company, since it is predicted that regional flights, the segment in which Embraer is a leader, “should gain space” in the global air market.
