April 17 (Bloomberg) -- Embraer SA posted its biggest five-day drop in nine months amid concern the Brazilian planemaker’s 2013 sales will trail projections after deliveries declined in the first quarter.
The shares slumped 11 percent since the company said April 11 it delivered 17 commercial planes in the first quarter, compared with 21 a year earlier, and executive jet deliveries fell to 12 from 13. The stock slid 5 percent to 16.01 reais at the close of trading today in Sao Paulo. The Bovespa index slipped 2.1 percent.
Embraer had climbed 25 percent this year before the deliveries report. Investors bought shares as the company announced an order from Republic Airways Holdings Inc. that may total $4 billion and signed a $950 million deal to sell jets to the U.S. Air Force. Embraer’s revenue is projected to rise 1.8 percent to 12.4 billion reais ($6.1 billion) this year, according to the average estimate of ten analysts surveyed by Bloomberg.
“Everybody was very optimistic about the company as it signed important deals,” Felipe Rocha, an analyst at brokerage Omar Camargo, said by phone from Curitiba, Brazil. “The bad news is a strong enough reason to justify a sale by foreign investors who were already considering exiting the Brazilian market.”
Foreign investors pulled 883.7 million reais out of the Brazilian stock market this month through April 15, according to data compiled by Bloomberg.
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