SAO PAULO: Brazil's Embraer, the third biggest aircraft manufacturer in the world, posted a first quarter loss of $12.3 million Friday, also saying that a much-anticipated tie-up with Boeing is still up in the air.
The losses compared to profits of $53 million in the same period last year. Earnings before interest, taxes, depreciation and amortization, or EBITDA, were $89.5 million, down from $113 million.
The company delivered 14 commercial planes and 11 executive jets in the January to March period, a slowdown from last year when 18 commercial and 15 executive planes were delivered, the company said in a statement.
Founded as a state group in 1969, Embraer was privatized in 1994 and offers a range of civil and military aircraft as well as business jets. The Brazilian government retains a "golden share" in making strategic decisions for the company.
US giant Boeing and Embraer have been in talks to combine their operations, which would reportedly see Boeing holding most of the company.
Defense activities and possibly also the executive jets branch would be excluded from the merger, Embraer said.
"Embraer and Boeing are analyzing potentially viable structures for the business combination, which may include the creation of a new jointly owned entity for the Commercial Aviation segment," the statement said.
"The negotiations are ongoing," the statement said, adding: "The Company cannot assure that a business combination with Boeing will materialize."
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