Embraer posts net loss in seasonally weaker Q1; shares fall

Embraer widened its net loss in the first quarter from a year ago, driving its shares lower on Thursday despite saying results came in within management expectations for a seasonally weaker period and reaffirming full-year forecasts. Brazil-traded shares in the company, the world's No.3 planemaker after Boeing and Airbus, were down more than 7% in morning trading, making it the biggest faller on Brazil's Bovespa stock index, which was near flat. The planemaker reported a quarterly adjusted net loss of $88.9m, larger than the $75.3m loss seen a year ago, saying it also burnt more cash in the period as it prepares to increase deliveries in the next quarters. "Seasonally weak Q1 was lighter than expected in gross margins and book-bill with larger cash use," analysts at TD Cowen said. "Investors likely will be somewhat disappointed". The Brazilian firm had already reported deliveries of 15 aircraft in the period, up 7% on the previous year but well below the 80 jets delivered in Q4, which tends to be busier for the company. "We expect higher delivery and sale activities and improved results in coming quarters," CE Francisco Gomes Neto told reporters, saying the company has several active sales campaigns and good prospects especially for its commercial aviation and defense units.<br/>