Brazil builder PDG posts a Q3 net loss of $73 mln
SAO PAULO Oct 30 (Reuters) - Brazilian homebuilder PDG Realty SA's third-quarter net loss widened to 174.7 million reais ($73 million) from 111.3 million reais a year earlier, more than market analysts expected, according to a securities filing on Thursday.
Seven analysts in a Reuters survey had an average forecast for a third-quarter net loss of 95.8 million reais.
Earnings before interest, taxes, depreciation and amortization, a gauge of operating profit known as EBITDA, rose 64 percent from a year earlier to 111.5 million reais, but came in below the average analyst forecast of 127 million reais.
PDG is working its way back from an expansion program that left it with unprofitable projects, big quarterly losses and a heavy debt load. Like many of its competitors, the company is now looking to streamline and focus on inventories as it faces an uncertain economic environment in Brazil.
PDG launched 256 million reais worth of new projects in the quarter, up 35 percent from a year earlier, while pre-sales on new units dropped 45 percent to 2.3 billion reais, according to the filing.
Inventories fell 14 percent, partly due to a major sales event held in August. Discounts granted during the promotion reduced gross margins to 17.1 percent, from 17.9 percent a year earlier, it said.
Sales cancellations totaled 102 million reais, down 63 percent from the second quarter and 58 percent a year ago. Net sales climbed to 666 million reais, up 74 percent from the second quarter and 141 percent from a year ago.
Despite PDG's positive free cash flow in the quarter, net debt to shareholder equity rose to 60.4 percent from 59.9 percent in the second quarter.
($1 = 2.40 Brazilian reais) (Reporting by Asher Levine, Brad Haynes and Reese Ewing; Editing by Alan Crosby)
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