Embraer Falls After Lower-Than-Expected Profit: Sao Paulo
Embraer SA (ERJ:US), the world’s fourth- largest planemaker, fell for a third day as first-quarter profit dropped 36 percent and missed analysts’ estimates.
Shares fell 0.4 percent to 16.20 reais at 11:12 a.m. in Sao Paulo, after earlier dropping as much as 2.7 percent. The benchmark Bovespa index declined 0.4 percent.
Embraer reported net income attributed to shareholders of 111.2 million reais ($59 million) in the first quarter, below the average estimate for an adjusted profit of 139.2 million reais in a Bloomberg survey of nine (ERJ:US) analysts.
The company “released poor 1Q12 results, in our view, worse than both 1Q11’s figures and our estimates,” analysts Edigimar Maximiliano Jr and Luiz Pecanha at Banco Bradesco BBI wrote in a report today.
Net revenue rose 17 percent to 2.05 billion reais as the company increased deliveries, while costs advanced 16 percent to 1.57 billion reais.
Embraer delivered 34 aircraft in the quarter, up from 28 a year earlier, the company said on April 17.
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