Embraer reported net profits of $246.8 million in 2017, 48.58 percent more than the previous year - news that comes amid expectations that it might partner with US aerospace giant Boeing.

Embraer also indicated that its Q4 2017 profits totalled just $35.2 million – 82 percent less than the prior year's $195.2 million in the same period, and substantially below the previous quarter's $110 million.

Earnings of the full year before interest, taxes, depreciation and amortisation came to $644.7 million in 2017.

Embraer said ‘negotiations continue to advance’ with the US giant on the possible Boeing merger, but noted ‘there are no guarantees.’

Paulo Cesar de Souza, president, Embraer, added: ‘Given the complexity of the operation, it is natural that we are spending more time in analysis and talks.’

He said the parties were ‘committed to finding an alternative.’

Boeing and Embraer have been in talks to combine their operations, which would see Boeing holding up to 90 percent of the new company to be based in Chicago, a person familiar with the talks told AFP in February.

Born as a state group in 1969, Embraer was privatised in 1994 and offers a range of civil and military aircraft as well as business jets.

In late 2017, Brazilian President Michel Temer said he welcomes ‘an injection of foreign capital’ into the company as well as a ‘partnership agreement,’ but emphasised that ‘we are not considering is the question of transferring.’