Brazilian plane maker Embraer is expecting post pre-tax 2018 income of $5.1 billion, down from the $5.4 billion to $5.9 billion range it had initially forecast (Eric PIERMONT)

Rio de Janeiro (AFP) – Brazilian plane-maker Embraer on Wednesday revised downwards its forecast for its 2018 full-year results, notably saying that deliveries of private jets would come in well under the predicted number.

In a note to investors, it said it would register pre-tax income of around $5.1 billion, down from the $5.4-5.9 billion range it had initially forecast.

This year, it expects to break even, in part because of costs associated with a tie-up of its commercial business with US giant Boeing. It expects to pay out $1.6 billion in dividends by year’s end because of the joint venture.

Embraer said that “global market conditions for executive jets, although gradually improving, continue to recover more slowly than expected,” and that it delivered 91 business jets last year, instead of the 105-125 predicted.

In 2019, the company expects to deliver 90-110 executive jets and 85-95 commercial jets, for revenue of $5.3-5.7 billion.

The Boeing-Embraer joint venture, announced in July 2018, suffered some turbulence in recent weeks, notably because of some hesitations voiced by new Brazilian President Jair Bolsonaro.

But Bolsonaro ended up giving the green light to the deal, which will create a joint entity valued at $5.2 billion.

Embraer is the third-biggest plane-maker in the world. Privatized in 1994, it makes aircraft in the civilian and military markets. The latter are exempt from the Boeing tie-up.

Under the deal with Boeing, the US company will take 80 percent control of Embraer’s civilian business, putting it in a position to offer commercial planes with up to 150 seats.

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