UPDATE 1-Brazil's Embraer cuts revenue forecast on defense delays
(Adds details of forecasts, earnings)
By Brad Haynes
SAO PAULO, July 30 (Reuters) - Brazilian planemaker Embraer SA cut its 2015 revenue forecast on Thursday due to delayed military contracts and extended deadlines for its cargo jet program as a government austerity program slashed defense spending.
Embraer lowered its revenue outlook by $300 million to between $5.8 billion and $6.3 billion.
A sharp depreciation of Brazil's currency also weighed on the value of defense contracts in U.S. dollars, although the boost to export efficiency led the company to hold its targets for operating profit.
Brazil-based Embraer, which reports its results in U.S. dollars, is listed in New York and Sao Paulo.
Embraer has invested in a diversified defense and security division in recent years, winning key contracts to develop the KC-390 military cargo plane, refurbish old fighter jets and set up a border monitoring system deep in the Amazon rainforest.
Defense operations contributed over 23 percent of Embraer sales last year, but fell to just 14 percent of revenue in the second quarter.
Embraer said it now plans to deliver the first KC-390 cargo jets in the first half of 2018, pushing back a deadline originally set for the end of 2016. Continuación...