Home Aviation Embraer Cuts Profit Forecast for 2018, Profit Margin Estimates Between 2% and...

Embraer Cuts Profit Forecast for 2018, Profit Margin Estimates Between 2% and 5% in 2020

286
0
SHARE

 

Embraer has lowered its performance projections for 2018, lowering jets deliveries to its initial expectations, and estimated that its profit margin before interest and taxes will rise from close to zero this year to 2 to 5 percent in 2020, the first year after forming the alliance with Boeing.

The company reduced its forecast of deliveries from 105 to 125 executive jets in 2018 to 91 units and kept expectations on commercial airplanes from 85 to 95 aircraft.

By 2020, Embraer also estimated net revenues of between US$2.5 billion and US$2.8 billion and free cash flow close to zero.

The company said that the forecast for 2020 includes all of its executive jet and defense product divisions that were not included in the Boeing partnership, but excludes the expected results of its 20 percent stake in the joint-venture in commercial aviation to be formed this year with the North American group.