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EMBRAER S.A. Releases Second Quarter 2018 Earnings Results

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EMBRAER S.A. Releases Second Quarter 2018 Earnings Results

PR Newswire

SÃO PAULO, July 31, 2018 /PRNewswire/ -- EMBRAER S.A. (NYSE:ERJ, B3: EMBR3)) releases its Second Quarter 2018 earnings results.

  • In 2Q18, 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 2Q17;
  • The Company's firm order backlog was US$ 17.4 billion at the end of 2Q18, including contracts of the Services & Support segment;
  • Reported EBIT and EBITDA in 2Q18 were US$ (17.7) million and US$ 44.1 million, respectively, yielding margins of -1.4% and 3.5%. The reported EBIT and EBITDA figures include the negative impact of a non-recurring special item of US$ 127.2 million related to additional costs (cost base revision) on the KC-390 development contract in 2Q18, resulting from the recent incident with prototype aircraft 001 in May (see page 9 for more details);
  • Adjusted EBIT and adjusted EBITDA, excluding the impact of the KC-390 cost base revision, were US$ 109.5 million and US$ 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;
  • 2Q18 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (126.5) million and US$ (0.69), respectively. Adjusted Net income (excluding deferred income tax and social contribution and special items) for 2Q18 was US$ 6.1 million, with Adjusted earnings per ADS of US$ 0.03;
  • Embraer generated US$ 47.8 million in Free cash flow in 2Q18, and finished the quarter with total cash of US$ 3,341.1 million and total debt of US$ 4,062.3 million, yielding net debt of US$ 721.2 million;
  • The Company reaffirms all aspects of its 2018 financial and aircraft deliveries guidance, which does not include the non-recurring impact of the KC-390 cost base revision recognized in 2Q18.

 

MAIN FINANCIAL INDICATORS


in millions of U.S dollars, except % and earnings per share data


1Q18

2Q17*

2Q18

YTD18


Revenue

992.0

1,771.2

1,256.5

2,248.5


EBIT

26.4

177.5

(17.7)

8.7


EBIT Margin %

2.7%

10.0%

-1.4%

0.4%


Adjusted EBIT

26.4

168.1

109.5

135.9


Adjusted EBIT Margin %

2.7%

9.5%

8.7%

6.0%


EBITDA

89.5

258.3

44.1

133.6


EBITDA Margin %

9.0%

14.6%

3.5%

5.9%


Adjusted EBITDA

89.5

249.0

171.3

260.8


Adjusted EBITDA Margin %

9.0%

14.1%

13.6%

11.6%


Adjusted Net Income (Loss)

(24.6)

126.6

6.1

(18.5)


Adjusted earnings per share - ADS basic

(0.1342)

0.6885

0.0331

(0.1010)


Net income (loss) attributable to Embraer Shareholders

(12.3)

61.7

(126.5)

(138.8)


Earnings (losses) per share - ADS basic (US$)

(0.0671)

0.3353

(0.6898)

(0.7569)


Adjusted Free Cash Flow

(430.9)

219.8

47.8

(383.1)


Net debt

(758.6)

(661.5)

(721.2)

(721.2)


* Restated 2017 results for new accounting rules (IFRS 15 and IFRS 9)

For additional information, please check the full document in our website ri.embraer.com.br

INVESTOR RELATIONS

Eduardo Couto, Chris Thornsberry, Caio Pinez, Nádia Santos, Paulo Ferreira and Viviane Pinheiro.
(+55 12) 3927 1000
investor.relations@embraer.com.br
ri.embraer.com.br

CONFERENCE CALL INFORMATION

Embraer will host a conference call to present its 2Q18 Results on Tuesday, July 31, 2018 at 10:00 AM (NY). The conference call will also be broadcast live over the web at ri.embraer.com.br

Conference ID: EMBRAER

Telephones USA / International: (Toll-free) +1 (866) 262-4553 / (Dial-in) +1 (412) 317-6029
Telephones Brazil: +55 (11) 3193-1001 / +55 (11) 2820-4001

Cision View original content:http://www.prnewswire.com/news-releases/embraer-sa-releases-second-quarter-2018-earnings-results-300688877.html

SOURCE EMBRAER S.A.

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