Embraer SA (EMBR3) was poised for its biggest retreat in 11 months after the Brazilian aircraft maker said its backlog of orders slumped in the second quarter.
Embraer lost 5.6 percent to 12.08 reais at 12:01 p.m. in Sao Paulo, the steepest tumble since Aug. 8 on a closing basis. The retreat was the biggest among members of the Bovespa index, which fell 0.2 percent.
The manufacturer said late yesterday that the value of orders it has received but hasn’t yet fulfilled fell to $12.9 billion as of June 30, from $15.4 billion at the end of 2011.
“The backlog decline was primarily driven by a significant slowdown in the flow of new orders, as a result of the weakness of the global economy,” Pedro Balcao, Renan Manda and Bruno Amorim, analysts at Banco Santander Brasil SA (BSBR:US), wrote in a note to clients dated today.
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