Embraer Rallies on Jet Orders, Pact With Boeing: Sao Paulo Mover
Embraer SA (EMBR3), the Brazilian planemaker that has led gains on the Ibovespa, rose after receiving $709 million in jet orders and expanding a pact that lets Boeing Co. to sell its military aircraft globally.
The shares gained 3 percent to 20.54 reais at 12:01 p.m. in Sao Paulo, the highest on a closing basis since January 2008. The Ibovespa equity index slumped 0.6 percent.
Japan Airlines Co. was one of four air carriers to order Embraer’s jets during the Paris Air Show, the manufacturer’s Chief Executive Officer Frederico Curado said in an interview. JAL will acquire four E-170s, while Conviasa will buy seven E-190s, Air Lituanica will receive four of the jets and Air Costa will order one, Curado said.
Embraer and Boeing agreed to a deal under which the U.S. planemaker will sell Embraer’s KC-390, a medium-airlift aircraft, in the U.S., U.K. and some countries in the Middle East, the companies said today in statement.
Embraer extended its rally this year to 40 percent after announcing an agreement to sell jets worth as much as $8.3 billion to SkyWest Inc., an order of as much as $4 billion from Republic Airways Holdings Inc. (RJET) and a $950 million contract with the U.S. Air Force. The Ibovespa (IBOV) has fallen 21 percent during the same period.
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