Brazil builder PDG posts fifth straight quarterly loss
SAO PAULO, July 30 (Reuters) - Brazil's PDG Realty SA reported its fifth straight quarterly loss on Thursday as the homebuilder deals with the ongoing impact of a slowing economy.
PDG lost 231 million reais ($69.37 million) in the second quarter, according to a securities filing, larger than the average forecast for a net loss of 145.8 million reais in a Reuters survey of four analysts.
PDG has been working to claw its way back to profitability after an aggressive expansion program left it with unprofitable projects, big quarterly losses and a heavy debt load.
The company launched no new projects in the quarter as it focused on selling off unwanted inventory, the filing said. Gross sales dropped to 350 million reais, nearly half the 658 million reais in sales it reported a year earlier.
Net debt fell, however, to 5.8 billion reais from 7.2 billion reais in the second quarter of 2014.
"In the second half of the year we will continue to focus our efforts on deleveraging the company," PDG's management team said in the filing.
The value of inventories fell 20.8 percent from a year earlier to 2.97 billion reais, while discounts reduced gross margins to 13.2 percent from 21 percent last year.
Sales cancellations totaled 279 million reais, up 10 percent from the first quarter and 1.5 percent from a year ago. ($1 = 3.33 Brazilian reais) (Reporting by Asher Levine; Editing by Matthew Lewis)
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