One example of this is Embraer (ERJ, Financial), the world’s fourth-largest aircraft manufacturer, which has substantial exposure to markets outside of Brazil. In fact, more than three quarters of its sales are outside of Brazil. As a result, Embraer has benefited from selling its products in U.S. dollars worldwide—while having a large part of its manufacturing base in Brazil where the currency weakness is a benefit from a cost perspective. The company has a strong competitive position as it is the market leader in regional jets and has gained significant share in corporate jets over the past several years to become one of the leaders of that market as well. While the market is concerned with the investing environment in Brazil, along with current cyclical weakness in the business jet market, we believe that Embraer presents an attractive investment opportunity as it continues to strengthen its competitive position via a robust product development strategy.
From Richard Brandes' Second Quarter 2015 Commentary”‹.
