Fri, Oct. 14, 8:00 AM| Fri, Oct. 14, 8:00 AM
Wed, Oct. 12, 10:12 PM
- Embraer (NYSE:ERJ) +2.2% AH after saying it is near agreements with U.S. and Brazilian investigators to settle allegations of corruption.
- ERJ says final agreements with the U.S. Justice Department and SEC and with Brazil’s federal public prosecutor and market regulator CVM will have terms similar to those described in July, which included possible fines, a deferred prosecution agreement and an independent monitor to assess compliance.
- Before the news, Goldman Sachs had upgraded ERJ to Buy from Neutral, citing the potential for strong Q3 results and more details on cost improvement plans.
Fri, Oct. 7, 8:23 AM
- Talks with U.S. authorities to settle a bribery investigation are at an advanced stage but that no agreement has yet been reached, Embraer (NYSE:ERJ) said in a securities filing.
- "Despite the advanced stage of negotiations, the parties have not yet reached an agreement."
- Previously: Embraer graft probe eyes Mozambique deal (Oct. 06 2016)
Thu, Oct. 6, 10:06 AM
- A U.S. investigation of Embraer (ERJ +1.7%) is looking into alleged bribery in the sale of aircraft to Mozambique's state airline in 2008, Folha de S.Paulo reports.
- Embraer reaffirmed in a statement it has been cooperating and negotiating a formal accord with U.S. officials after voluntarily expanding an internal investigation.
Mon, Sep. 26, 5:43 PM
- Brazilian planemaker Embraer (NYSE:ERJ) says it will cut nearly 1,500 employees, or ~8% of its workforce, through a voluntary buyout program, in a bid to cut costs amid weak business jet sales and downsized defense contracts.
- ERJ's defense unit, its fastest-growing division just a few years ago, has been forced to scale back major programs as Brazil's federal budget crisis hit military spending.
- Brazilian newspaper O Globo reported over the weekend that ERJ is preparing a potential sale of the defense unit, which the company denies.
Fri, Sep. 2, 8:15 AM
Wed, Aug. 10, 8:50 AM
- A class action suit has been filed against Embraer (NYSE:ERJ), seeking damages for shareholders, although the planemaker doesn't have enough information about the amount they are seeking.
- Last month, the company posted an unexpected Q2 net loss due to a $200M provision for the possible settlement of a U.S. corruption probe.
Tue, Aug. 9, 10:41 AM
- Embraer (ERJ +1.1%) is down nearly 37% since the start of the year, but that doesn't mean the pain is over, according to Drexel Hamilton.
- Analyst Pete Skibitski reiterated a Hold rating on the Brazilian aerospace giant, citing the company's guidance reduction and ongoing issues that he believes are going continue to weigh on the shares.
- Skibitski also sees ongoing concerns in regard to the DOJ/SEC FCPA investigation into the firm, along with the lackluster market for business jets.
Tue, Aug. 9, 10:10 AM
Thu, Aug. 4, 12:39 PM
- The Brazilian federal prosecutor in charge of investigating systemic tax fraud says cases against Petrobras (NYSE:PBR), Embraer (NYSE:ERJ) and processed food producer BRF (NYSE:BRFS) lack sufficient evidence of any wrongdoing, and he will instead focus on cases in which he believes he has solid evidence.
- Ford Motor's local unit also is among companies dropped from the list singled out in early 2015.
- The prosecutor's refocused investigation will include Bank Boston, a lender that was owned by Bank of America before being purchased by Itau Unibanco (NYSE:ITUB) and steelmaker Gerdau (NYSE:GGB).
- The prosecutor says he could take up the suspended investigations again in 2017.
Mon, Aug. 1, 10:51 AM
- RBC has lowered its price target on Embraer (NYSE:ERJ), pushing down shares more than 4%.
- RBC Analysts Derek Spronck and Walter Spracklin write: "It was a 'kitchen sink' quarter for Embraer, in which Q2 results came in below, 2016 guidance was reduced, and a $200 MM loss contingency was recorded. Expectations are now re-based, and while we believe the ERJ shares could move higher from here, the lack of visibility of end-market demand in aero and still challenging domestic environment keeps us on the sidelines for now.
- Our 2017 EBITDA now sits at $946M (from $960M). We are also taking up the risk discount we apply to the peer multiple on the aerospace division to 40% (from 30%), due to the lack of visibility and still challenging conditions in both commercial and executive aviation. This takes our price target to $24 (from $28).
Fri, Jul. 29, 10:58 AM
- Embraer (ERJ -12.4%) plunges to two-year lows after posting a big Q2 earnings miss and cutting its full-year revenue outlook.
- The Brazilian aircraft manufacturer says it is nearing a settlement to defer prosecution under the U.S. Foreign Corrupt Practices Act for allegedly bribing officials in the Dominican Republic to secure a deal for defense aircraft; a $200M provision for a possible deal contributed to Q2's unadjusted $99M net loss.
- Even without the FCPA provision, EBITDA would have fallen 15% Y/Y to $152M, missing an average forecast of $189M.
- ERJ now sees FY 2016 revenues of $5.8B-$6.2B vs. $6.2B analyst consensus estimate and prior guidance of $6B-$6.4B; sees 2016 deliveries for light executive jets of 70-80 from prior 75-85, and deliveries for large executive jets of 35-45 from prior 40-50.
- "This feels like a 'kitchen sink' quarter to us where management needed to reset expectations," says RBC analyst Derek Spronck.
Fri, Jul. 29, 9:22 AM
Fri, Jul. 29, 6:11 AM
Thu, Jul. 28, 5:30 PM
Fri, Jul. 15, 8:16 AM
- Brazil may launch a trade challenge against Canada over state funding to Bombardier (OTCQX:BDRAF, OTCQX:BDRBF), Foreign Minister Jose Serra told Reuters.
- Serra said a $1B investment in Bombardier from Quebec was a "subsidy" and gave the company an unfair advantage that could hurt Brazil's Embraer (NYSE:ERJ)