Embraer improves cash position in 2Q

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Embraer generated $190 million cash from operating activities in the second quarter to 30 June, up from $78 million in the 2011's corresponding quarter.

Net cash used in investing activities totalled $128 million compared with $192 million a year ago. The Brazilian airframer generated $245 million cash from financing activities in the second quarter to 30 June, up from $144 million in last year's corresponding period.

Embraer's total cash position was $2.45 billion, at 30 June 2012, up from $2.16 billion in last year's second quarter. Cash and cash equivalents amounted to $1.68 billion at the end of the second quarter, compared with $1.35 billion a year ago. Financial assets totalled $760 million, down from $775 million at the end of last year's second quarter.

Net cash totalled $290.2 million, down from $406 million a year ago. At the end of the first quarter, Embraer had $302 million net cash.

Total debt reached $2.16 billion at 30 June, up from $1.71 billion at the end of last year's second quarter. Long term loans totalled $2.68 billion, up from $1.5 billion a year ago, while short term loans were $474 million compared with $218 million last year.

The increase in the company's total debt comes as a result of the need for additional working capital and cash management to support ongoing operations and as a result Embraer issued a total of $500 million in senior unsecured notes, with a 5.15% coupon, payable semi-annually with a 10-year maturity.

Embraer recorded a second quarter net profit of $54.3 million, a decline of 43.7% compared with the $96.4 million recorded in the same period last year. It delivered 35 commercial aircraft in the quarter, which includes eight E175s, 22 E195s and five E195s.