LONDON – Brazilian manufacturer Embraer released its preliminary forecast of sales and deliveries for 2019, showing a complete breakdown of estimaded revenue and delivery numbers for each of their divisions.
The report showed that Embraer expects to deliver between 85 and 95 commercial jets (same as last year)—a number that could change once the Joint Venture between the Brazilian planemaker and Boeing is completed.
The Brazilian Government gave its blessing to Embraer and Boeing over the proposed strategic partnership to consolidate commercial and military manufacturing.
The approved joint venture will be made up of the commercial aircraft and services operations of Embraer. Boeing will take an 80% ownership stake in the wing with Embraer holding the remaining 20%.
In the meantime, however, Embraer failed to meet last year’s projections, showing as much as $250 million of a gap between what it had projected and what was recorded.
Embraer spent almost twice as much cash as what it had forecasted last year, logging a negative cash flow of more than $200 million.
The biggest change in the report is the decrease in the number of Executive Jets forecasted to be delivered—between 90 and 110 planes.
In 2018, the company had estimated to deliver between 105 and 125 aircraft; however, it looks like only 91 business jets were handed over to new customers.
Turning into the financials, Embraer said that it “expects to keep $1 billion in cash after paying off all of its debt,” once the proposed Joint Venture with Boeing closes.
The Brazilian manufacturer, however, warned that for the next two years there might be “little or no profit” at all.
With the forecast just being preliminary, nothing is set in stone. Embraer noted that this projection also takes into account all costs associated with the Boeing deal.