Embraer Shows Modest Signs of Progress in Q2
Embraer (NYSE: ERJ) reported another quarterly loss on Wednesday morning, as it continues to prepare for the sale of a majority stake in its commercial jet business to Boeing (NYSE: BA). An unfavorable mix shift in its commercial aviation segment and separation costs related to the pending Boeing transaction weighed on its profitability for the quarter.
That said, the two main business segments that Embraer will keep going forward -- executive aviation and defense -- are becoming healthier. As a result, while Embraer stock is stuck in the doldrums right now, it could rebound in the years ahead, following the consummation of the Boeing deal.
Embraer's adjusted operating profit fell to $26.6 million last quarter, down from $106.9 million a year earlier. This led to a net loss of $0.08 per share. However, most of the company's profit decline came in the commercial aviation segment, which saw its operating margin fall from around 10% into low-single-digit territory.
Source Fool.com
