The logo of Brazil's aircraft manufacturer Embraer
Sao Paulo - AFP
Brazil's Embraer, the world's third biggest commercial aircraft manufacturer, announced $109 million losses for the third quarter of 2015, blaming the weakening Brazilian real for fueling higher tax bills.
Embraer said the falling currency directly caused $24.2 million in losses and an extra $164.4 million in taxes.
"The real devaluation of 28% versus the US dollar during the quarter explains most of the income tax variation, due to non-cash deferred income taxes on non-monetary assets," Embraer said in a statement.
Excluding that income tax hit, Embraer saw a $71.5 million profit.
EBITDA -- earnings before interest, taxes, depreciation and amortization -- rose 16.2 percent to $158 million.
Embraer reported deliveries of 21 commercial and 30 executive jets for the quarter, with 68 commercial and 75 executive jets in the first nine months of the year.
The backlog is little changed at $22.8 billion.
The real's sinking -- under pressure from Brazil's recession, political turmoil and a credit downgrade -- has added volatility to the bottom line at other major corporations in the third quarter, including mining giant Vale.
Longer-term, the depreciation has helped the export-heavy businesses with revenue in dollars