Embraer Soars on $840 Million United Jet Order: Sao Paulo Mover
Shares gained 5.9 percent to 17.39 reais at 11:54 a.m. in Sao Paulo, the steepest advance in three months. It was the best performance on the Brazilian benchmark stock index Ibovespa, which rose 0.5 percent.
Today’s advance pared the Sao Jose dos Campos, Brazil-based planemaker’s decline this month to 3.2 percent. The stock has fallen amid concern that revenue will trail projections this year after it reported that first-quarter deliveries fell to to 29 planes from 34 one year earlier. Citigroup Inc. cut its recommendation on the stock to sell from the equivalent of hold on April 26.
Deliveries of the 76-seat E-175 jets for United will begin in 2014, and existing 50-seat aircraft will be replaced, according to the Chicago-based airline. Embraer said yesterday that the carrier has options for 40 more planes.
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