Embraer SA rose to a three-month high after newspaper O Estado de S. Paulo reported that Lebanon is considering the purchase of at least 10 attack planes from the Brazilian manufacturer.
The shares added 1.6 percent to 19.20 reais at the close of trading in Sao Paulo, the highest since Sept. 11. It was the best performer on the Ibovespa stock benchmark, which dropped 2.3 percent.
Lebanon is considering buying 10 to 12 A-29 Super Tucano attack planes from Embraer as the Mideast country modernizes its armed forces, Estado reported, without saying where it got the information. Embraer’s military sales more than doubled from 2005 through 2012, according to data compiled by Bloomberg. Chief Executive Officer Frederico Curado said on an Oct. 31 conference call with analysts that he expects defense revenue to grow at least 10 percent in dollars this year.
The Sao Jose dos Campos, Brazil-based company’s press office declined to comment when contacted by Bloomberg News.
Embraer, which gets about 80 percent of its revenue from outside Brazil, also gained as the real fell to a level weaker than 2.4 per dollar for the first time in four months as the central bank began scaled-back support for the currency.