Brazilian aircraft manufacturer Embraer said Tuesday it suffered a loss of 48.4 million reais (about 23 million U.S. dollars) in the third quarter due to the devaluation of Brazilian real against the U.S. dollar.
The company's net earnings totaled 2.6 billion reais (about 1.2billion dollars) in the third quarter, down 3.3 percent from the same period last year.
As 97 percent of Embraer's production is exported, the volatility of the exchange rate in September had a direct effect on Embraer's results in the third quarter, the company said.
The company said it used derivatives to offset currency changes, but those operations resulted in a loss of 177.8 million reais (about 84.6 million dollars) due to the 15 percent drop in the real against the dollar in September.
Despite the losses with derivatives, Embraer said it did not speculate in the financial market. In the first half of 2008, Embraer earned 107 million reais (about 50.9 million dollars) with derivative operations.
The company reaffirmed its scheduled plan to deliver a total of195 to 200 jets in 2008. It delivered 48 aircraft in the third quarter.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article