Embraer releases fourth quarter and full year 2017 results

Alex Baldwin
By Alex Baldwin March 9, 2018 14:45

Embraer releases fourth quarter and full year 2017 results

Embraer has released its fourth quarter and full year results for 2017.

The Brazilian manufacturer delivered 23 commercial jets and 50 executive jets (32 light / 18 large) in the fourth quarter, and in 2017 delivered 101 commercial jets and 109 executive (72 light / 37 large) jets, meeting guidance for 2017.

Revenues in Q4 reached US$ 1,733.0 million and in 2017 were US$ 5,839.3 million, within the
company’s guidance range of US$ 5.7 to US$ 6.1 billion.

Adjusted EBIT and adjusted EBITDA1 excluding special items were US$ 132.7 million and US$ 220.3 million, respectively, in the fourth quarter, yielding margins of 7.7% and 12.7%. Adjusted EBIT and adjusted EBITDA exclude US$ 66.0 million in net non-recurring charges in Q4 2017, mostly related to impairments in the Executive Jets and Defense & Security segments.

For the full year, adjusted EBIT and adjusted EBITDA were US$ 397.1 million and US$ 712.5 million, respectively, excluding US$ 67.8 million in net non-recurring charges. For 2017, adjusted EBIT margin was 6.8% and adjusted EBITDA margin was 12.2%, which were below the Company’s guidance.

Embraer closed 2017 with adjusted free cash flow generation of US$ 406.7 million in Q4, resulting in positive 2017 free cash flow of US$ 404.8 million, significantly above the Company’s initial expectations for the year of free cash flow consumption of US$(150) million or better. Embraer finished 2017 with net debt of US$ 310.8 million, an improved position versus net debt of US$ 574.7 million at the end of 2016.

Net income attributable to Embraer shareholders and earnings per ADS were US$ 35.2 million and US$ 0.19, respectively. Adjusted net income (excluding the impact of FX-related non cash deferred income tax and social contribution and non-recurring items) for the quarter was US$ 58.3 million, representing adjusted earnings per ADS of US$ 0.32 in Q4 2017. Adjusted net income for 2017 was US$ 279.7 million, representing adjusted earnings per ADS of US$ 1.52 for the year;

The Company reaffirms its 2018 guidance first published in the third quarter 2017 earnings release on October 27, 2017. See further details on the guidance on page 10.

Alex Baldwin
By Alex Baldwin March 9, 2018 14:45

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