Brazil's Embraer posts 12 pct profit drop for 2006

0 Comments | AFP, March, 2007

SAO PAULO (AFP) — Brazilian aircraft manufacturer Embraer reported Friday that 2006 profits slid 12 percent lower in 2006, sharply hit by the dollar's weakness.

Net profit was 390.1 million dollars, down 12.4 percent from a year earlier when it earned 445.7 million.

In the Brazilian currency, net profit fell 12.3 percent to 621.7 million reals.

Sales were stable in dollars at 3.8 billion, but fell 8.7 percent to 8.34 billion reals.

Chief executive Mauricio Botelho stressed Friday that there was a "huge impact of the (US) dollar" which is weaker against the real. It slumped from 2.43 reals in 2005 to 2.18 reals in 2006.

The company's results also took a hit in 2006 from delays in delivering Embraer 190s and 195s due to a problem with an an...