Defense money-free Embraer delays KC-390 project – Air & Naval Defense

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By Márcio Juliboni

With a forecast of an increase of only 5% in the 2021 budget, the Minister of Defense, Fernando Azevedo e Silva, signaled that strategic projects will be delayed. Among them, the development of the cargo plane KC 390, built by Embraer (EMBR3), in partnership with the military.

Considered one of the most modern in the world, the freighter has already aroused the interest of several governments. Started in 2009, the project gained momentum in 2014, when then-president Dilma Rousseff signed a contract for the acquisition of 28 aircraft to replace the current FAB Hércules freighters.

At the time, the agreement was budgeted at R $ 7.2 billion. The units were supposed to be delivered from 2016, but the first KC 390 was only incorporated into the FAB fleet in 2019.

Immediate disembarkation

For Victor Mizusaki and Flávia Meireles, who signed a brief Ágora comment on the matter, “delays in the Brazilian government’s defense projects could affect Embraer’s prospects in this segment.”

Ágora reinforced the sale recommendation for Embraer’s shares, with a target price of R $ 5 per paper. The value is 19% lower than the R $ 6.18 with which the company closed yesterday (24).

This is more bad news for the company, which, in recent weeks, has had an arm wrestling with the unions, about the company’s intention to lay off 900 employees, announced earlier this month.

FONTE: Money Times

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