Embraer Q4 Profit Down 44 Percent On Derivatives

Brazilian aircraft maker Embraer said Thursday its fourth-quarter profit fell 44 percent because of large derivatives losses and slowing sales.

Net income under US generally accepted accounting principles dropped to USD$111.7 million for the quarter from USD$200.9 million in the year-earlier period, Embraer said in a statement.

Sales fell 3 percent to USD$1.82 billion as aircraft deliveries dropped to 59 from 61 in the year-earlier period.

Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, climbed to USD$607.5 million from USD$433 million in the fourth quarter of 2007.

Embraer had USD$120.6 million in losses on derivatives positions, which pressured the bottom line in the period. Net financial losses totaled USD$154.03 million, compared with financial gains of USD$34.76 million in the fourth-quarter of 2007, mainly because of the derivatives losses.

The company said its firm order backlog had reached USD$20.9 billion at the end of the fourth quarter, 3.2 percent lower from the quarter ended in September as demand for air travel dropped around the world because of the global economic downturn.