Brazil's Cyrela posts drop in 2nd-qtr profit as demand cools
SAO PAULO Aug 13 (Reuters) - Cyrela Brazil Realty SA , Brazil's largest homebuilder by market value, reported quarterly net income of 118 million reais ($33.53 million), a 30 percent drop from a year ago as sales declined, according to a securities filing on Thursday.
The result beat an average forecast of 115.5 million reais in a Reuters poll of six analysts.
Economic decline, stubborn inflation, rising mortgage rates and mounting unemployment have dragged consumer confidence to the lowest level on record, scaring many Brazilians out of their plans to invest in real estate and sinking prices along the way.
Companies like Cyrela, which focuses mainly on the middle-and high-income market, are being hit particularly hard.
Cyrela said last month that second quarter sales of houses and apartments fell 35 percent to 814 million reais, while the value of project launches rose 20 percent to 1.07 million reais.
Cyrela's net sales in the second quarter fell 35.3 percent from a year earlier to 814 million reis.
Cyrela posted a gross profit margin of 35.1 percent in the quarter, up from 33.4 percent a year earlier and up from 34.8 percent in the first quarter.
Earnings before interest, taxes, depreciation and amortization, a gauge of operating profit known as EBITDA, fell 12.7 percent from a year earlier to 238 million reais, beating the 216.9 million reais average estimate in the Reuters poll.
($1 = 3.5190 Brazilian reais) (Reporting by Alonso Soto; Editing by David Gregorio)
© Thomson Reuters 2016 All rights reserved.