Brazil’s Embraer SA the world’s third-largest commercial planemaker, swung to a fourth-quarter profit, helped by a more stable exchange rate and government steps to boost local industry although the result lagged forecasts.
Embraer posted a net profit of 253.7 million reais (86 million pounds), according to a securities filing on Tuesday, below the average estimate of $163 million (109 million pounds) in a Reuters survey of five analysts, reuters reports.
Analysts gave their estimates in dollars, but Embraer’s initial earnings report was in Brazilian reais.
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In the final quarter of 2011, Embraer posted a loss of 171.6 million reais, hurt by a provision for the bankruptcy of American Airlines’ parent company AAMRQ.PK.
A proposed merger with US Airways (LCC.N) has since breathed new life into one of the largest operators of Embraer’s regional jets, and executives are expecting orders from major U.S. carriers to lift sagging commercial aircraft output.
Earnings before interest, taxes, depreciation and amortization, a gauge of operating profit known as EBITDA, rose roughly six-fold to 641 million reais.
Net profit for the full-year was 697.8 million reais, more than four times the 156.3 million earned in 2011.
Deliveries of aircraft for commercial aviation fell to 23 in the fourth quarter of 2012, down from 32 in that period a year earlier while deliveries of executive jets rose to 53, three more than a year earlier.