Stock Groups

Embraer strikes deal with Brazilian Air Force on KC-390 order reduction -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILEPHOTO: Brazilian planemaker Embraer SA can be seen at its headquarters in Sao Jose dos Campos on February 28, 2018. REUTERS/Roosevelt Cassio/File Photo

SAO PAULO – Planemaker Embraer SA (NYSE: ) on Wednesday announced that it reached a contract with Brazilian Air Force in order to lower its order for 28 KC-390 cargo planes and increase the compensation clauses.

The Air Force’s order is now six aircraft less than its original order. However, the order is still seven more than what the Air Force stated it would order in November. In that month, the Air Force unilaterally reduced its order by 15 planes.

Embraer’s backlog will be reduced by $500 million by the move, and the additions of contract amendments not previously specified could increase Embraer’s operational results by 50 million.

The planemaker claims that the impact of the order decrease will not affect its guidance for 2021. It didn’t comment on the effect it might have on its 2022 guidance.

Signed in 2014, the original contract was worth 7.2 billion Reis (1.38 Billion).

($1 = 5.2354 reais)

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]