SAO PAULO (Reuters) - Brazilian planemaker Embraer SA said on Tuesday it had appointed bus manufacturer Marcopolo SA’s chief executive, Francisco Gomes Neto, its new CEO, as it completes the sale of most of its commercial aviation division to Boeing Co.
Gomes, who also has experience in the auto industry, will replace Paulo Cesar Silva, whose departure was earlier announced. Silva will remain a senior adviser to Embraer.
Shares in the planemaker were down about 0.5 percent in Sao Paulo following the announcement.
Analysts at Brazil bank Itau BBA said the announcement “makes a lot of sense for Embraer, which should concentrate in finding new markets ... (while) reducing costs.”
They added that Gomes had focused on cost cutting during his tenure at Marcopolo.
Gomes will join Embraer as the planemaker transforms its business, ceding control of its commercial planes division to Boeing in a $4.2 billion deal, while retaining a 20 percent stake giving it access to future dividend payments.
Embraer has said it will use the proceeds to pay off all its debt while refocusing on its two remaining divisions, executive jets and defense, both of which have been lossmakers for the company in recent quarters.
Gomes previously worked at the Brazilian units of German auto parts makers Mann+Hummel and Knorr Bremse AG before joining Marcopolo, which he led for three years.
Reporting by Carolina Mandl, Marcelo Rochabrun and Paula Arend Laier; Editing by Bernadette Baum