Embraer already hedging 2016 cash flow against FX risk -CFO
SAO PAULO Oct 27 (Reuters) - Brazilian planemaker Embraer SA has already begun hedging its 2016 cash flow against the impact of a volatile exchange rate, Chief Financial Officer Jose Antonio Filippo told journalists on a Tuesday earnings call.
Embraer's currency hedge, which Filippo said is intended to limit the effects of sharp FX swings, has limited the positive impact of this year's 32 percent depreciation of the Brazilian real on the company's results.
About 85 percent of Embraer's revenue is pegged to the U.S. dollar, while one-quarter of its costs, especially labor, are denominated in the Brazilian currency. (Reporting by Brad Haynes)
© Thomson Reuters 2016 All rights reserved.