EMBRAER S.A.: Notice To The Market

Rhea-AI Summary

Embraer S.A. (NYSE: ERJ) reported that the Brazilian Federal Government has decided to unilaterally reduce the value of contracts for 28 KC-390 aircraft by 25%. The company plans to pursue legal measures for economic and financial rebalancing of these contracts upon formal notification from the government. Embraer remains committed to the KC-390 project and highlights its export potential, noting that the aircraft has already been acquired by two European nations. The company continues to emphasize its longstanding partnership with the Brazilian Air Force.

Positive

• Commitment to KC-390 project and its export potential.
• The KC-390 aircraft has already been acquired by two European nations.
• Long-standing strategic partnership with the Brazilian Air Force.

Negative

• Unilateral 25% reduction in contract value by the Brazilian Federal Government affecting 28 KC-390 aircraft.

SÃO JOSÉ DOS CAMPOS, Brazil, Nov. 12, 2021 /PRNewswire/ -- Embraer S.A. (B3: EMBR3, NYSE: ERJ) ("Embraer" or the "Company") informs its shareholders and the market that it became aware on this date of the Brazilian Federal Government's decision to unilaterally reduce by 25% the total value of Contracts 002/DCTA-COPAC/2014 and 10/DCTA-COPAC/2014, signed in 2014 between the Federal Government, Embraer, and one of its subsidiaries ("Contracts"). The Contracts contemplate the supply of 28 KC-390 aircraft by Embraer to the Federal Government.

As soon as it is formally notified by the Federal Government, the Company will seek legal measures relating to the economic and financial rebalancing of the Contracts, as well as evaluating the effects of the reduction of the Contracts on its business and results.

Embraer reinforces its commitment to the KC-390/C-390 Millennium project, the new generation multi-mission aircraft, as well as its belief in the export potential of this product, which brings unique innovations in its category and which has already been acquired by two European nations.

Finally, Embraer reiterates its role as a strategic partner of the Brazilian Air Force in the development and implementation of high added value technological solutions and products, a partnership established for over 50 years.

Antonio Carlos Garcia
Executive Vice-President and CFO

PRESS OFFICES:

Headquarters (Brazil)

Corporate Communications
embraer@idealhks.com 
Cell: +55 11 98890 7777 
Tel.: +55 11 4873 7984

North America  

Alyssa Ten Eyck 
ayeck@embraer.com   
Cell: +1 954 383 0460  
Tel.: +1 954 359 3847

Europe, Middle East and Africa

Guy Douglas  
guy.douglas@nl.embraer.com 
Cell: +31 (0)657120121
Tell: +31 (0)202158109

China

Mirage Zhong 
mirage.zhong@bjs.embraer.com  
Cell:  +86 185 1378 5180 
Tel.: +86 10 6598 9988

Asia Pacific 

Nilma Missir-Boissac 
nilma.boissac@sin.embraer.com 
Cell: +65 9012 8428
Tel.: +65 6305 9955

View original content:https://www.prnewswire.com/news-releases/embraer-sa-notice-to-the-market-301423034.html

SOURCE Embraer S.A.

FAQ

What is the impact of the Brazilian government's decision on Embraer's contracts for KC-390 aircraft?

The Brazilian government has reduced the value of contracts for the 28 KC-390 aircraft by 25%, which Embraer is seeking to legally address.

What is the stock symbol for Embraer?

Embraer is traded under the stock symbol ERJ on the NYSE.

How is Embraer responding to the contract reduction by the government?

Embraer plans to seek legal measures for economic and financial rebalancing of the contracts.

What is the significance of the KC-390 project for Embraer?

The KC-390 project is significant for Embraer as it showcases innovation and has potential for exports, enhancing the company's market position.

When did Embraer announce the contract reduction issue?

Embraer announced the issue on November 12, 2021.