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AO PAULO, July 29 (Reuters) - Brazilian planemaker Embraer SA cut its outlook for executive jet sales this year and set aside $200 million to settle a U.S. graft probe, triggering an unexpected quarterly loss and sending shares to a more than two-year low on Friday.
Embraer said in a securities filing it was nearing a settlement to defer prosecution under the U.S. Foreign Corrupt Practices Act (FCPA) for allegedly bribing officials in the Dominican Republic to secure a deal for defense aircraft.
The provision for that possible deal contributed to a net loss of $99 million in the second quarter, according to a securities filing. The result was far worse than a $129 million profit a year earlier and the average forecast of a $76 million profit in a Reuters poll of analysts.
The world's third-largest commercial planemaker cut its outlook for executive jet sales this year by 10 aircraft, which lowered estimates for revenue, operating profit and cash flow.
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