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30 Apr 15. Brazil’s Embraer SA, the world’s third-largest commercial planemaker, posted a quarterly net loss on Thursday as business jet sales weakened, defense programs stalled and a stronger U.S. dollar lifted tax expenses. Embraer lost a net $62m attributable to shareholders, or about $0.3370 a share, according to a statement. It was the second quarterly loss in the past three quarters. The result missed an average forecast for a net profit of $44m in a Reuters survey of five analysts, few of whom considered the volatile tax bill in their models. Without the deferred tax impact of the currency swing, Embraer said it would have posted a net profit of $48m. A stronger dollar is good news in the long run for Embraer, Brazil’s biggest industrial exporter, which has around 90 percent of its revenue pegged to the greenback, while about a quarter of costs are denominated in Brazilian reais. But Brazil’s weaker currency created short-term headwinds by driving up its tax obligations on dollar-denominated assets and diminishing the contribution of domestic defense contracts. Brazil’s armed forces have also delayed payment on several programs due to a government austerity push aimed at shoring up the federal budget. Embraer’s defense revenue in the first quarter fell 46 percent to about a fifth of total sales. Business jet sales also slipped 37 percent in the quarter, compensated by surging deliveries to airlines, which carry a fatter gross margin than its executive jet division. Earnings before interest, taxes, depreciation and amortization, a gauge of operating profit known as EBITDA, slipped 1 percent to $149m, slightly above an average forecast of $140m. Embraer initially reported earnings in Brazilian reais. Including a $3m return for non-controlling interests, the company reported a first-quarter net loss of $59m. (Source: Reuters)
30 Apr 15. EMCOR Group, Inc. (EME) reported results for the first quarter ended March 31, 2015. For the first quarter of 2015, net income from continuing operations attributable to EMCOR was $33.2 m, or $0.52 per diluted share, compared to net income from continuing operations of $43.3m, or $0.64 per diluted share, in the first quarter of 2014. Revenues in the first quarter of 2015 were $1.59bn, approximately the same as revenues in the year ago period. Operating income for the first quarter of 2015 was $55.3m, or 3.5% of revenues. Operating income for the first quarter of 2014 was $72.1m, or 4.5% of revenues. Selling, general and administrative expenses for the 2015 first quarter were $161.6m, or 10.2% of revenues, compared to $143.9m, or 9.0% of revenues, in the year ago period.
The Company’s income tax rate in the 2015 first quarter was 37.9%, compared to an income tax rate of 37.7% in the year ago period.
Backlog as of March 31, 2015 was $3.74bn, an increase of 11.0% from $3.37bn at the end of the 2014 first quarter. Domestic backlog grew by $380 m, reflecting backlog growth in our U.S. Electrical and Mechanical Construction segments, slightly offset by declines in backlog in our U.S. Building Services and U.S. Industrial Services segments. Backlog growth in the commercial, transportation, industrial, water/wastewater and hospitality/gaming sectors was offset by declines in backlog in the healthcare and institutional sectors. Total backlog of $3.74bn as of March 31, 2015 increased by 2.8% from $3.63bn as of December 31, 2014.
Tony Guzzi, President and Chief Executive Officer of EMCOR Group commented, “The first quarter proved to be more challenging than we had originally anticipated as we encountered two external factors beyond our control: refinery turnaround project deferrals in our U.S. Industrial Services segment, as a result of