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Embraer Net Loss Widens in Slower Q1

Embraer Net Loss Widens in Slower Q1

Embraer, the Brazilian aircraft manufacturer, has seen its net loss widen in the first quarter of 2023 from a year ago.

The company reported a net loss of USD$88.9 million in the first quarter, which is larger than the USD$75.3 million loss seen a year ago. The order backlog that ended the first quarter was stable at USD$17.4 billion, which Embraer said was driven by the “evolution” in executive jets as well as services and Support.

Despite the loss, the company said that the results were within management expectations for a seasonally weaker period and reaffirmed all its financial and delivery forecasts for the year.

Embraer already reported deliveries of 15 aircraft in the period including eight executive jets, up 7% on the previous year. However, it was well below the 80 jets delivered, including 50 executive jets, in the busy fourth quarter of 2022.

Embraer last year concentrated deliveries in the fourth quarter amid supply chain disruptions, which the company expects to improve in 2023 but only fully normalize next year.

Embraer is not the only OEM to report a loss in the first quarter of 2023. Boeing and Airbus also reported losses due to the ongoing pandemic and supply chain disruptions.

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