Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Final hours: unlock premium data with Claim 60% OFF
Brazil's Embraer sees revenue at top of range after pandemic recovery
Published May 30, 2022 08:31AM ET
Updated May 30, 2022 03:30PM ET
© Reuters. A Embraer Praetor 600 aircraft is pictured during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 23, 2022. REUTERS/Denis Balibouse
By Gabriel Araujo
SAO JOSE DOS CAMPOS, Brazil (Reuters) -Brazil's Embraer SA (NYSE:ERJ) has already won enough orders to meet the top end of its targeted revenue range for the current financial year, the planemaker said Monday as it sees a bounce from a COVID-19 related downturn.
The positive outlook came after large revenue drops due to the pandemic and a failed deal in early 2020 for Boeing (NYSE:BA) Co to take over its commercial aviation division, after which it was forced to reintegrate the unit.
The latest update comes only weeks after Embraer on April 28 reaffirmed its financial outlook for 2022, with revenue seen reaching between $4.5 billion and $5 billion.
Chief Financial Officer Antonio Carlos Garcia said on Monday the company already had enough orders to meet the top end of that range, though the outcome would still depend on its ability to deliver all aircraft ordered.
"The only question mark is our ability, with our partners, to deliver those aircraft. It is just a matter of the disruption we see today in the market. We have orders for the $5 billion (revenue goal)," Garcia said.
Embraer's firm order backlog hit $17.3 billion at the end of the first quarter, the highest level since early 2018.
Garcia said Embraer is focused on reaching what it has already promised, adding that it "could be better" but supply chain constraints remained a potential drag.
"We always work to exceed market expectations - we did it last year - but we do prefer to deliver what we promised because we want to regain credibility in the capital markets," he said.
The company's 2023-2026 "fit for growth" plan, CEO Francisco Gomes Neto said, is based on pillars such as higher inventory usage and lowering the cost of goods sold.
The company expects to triple its inventory turnover as part of the plan and is well on its way to do so, he noted during an event, while also looking to achieve strong cash generation to finance projects with its own money.
The company is also confident that by next year it will regain its investment-grade credit rating.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.