Brazilian builder PDG posts unexpected fourth quarter profit
RIO DE JANEIRO Feb 14 (Reuters) - PDG Realty SA, one of Brazil's biggest homebuilders, posted a quarterly net profit of 19 million reais ($7.95 million), driven by stronger unit sales and boosted by the sale of an office project.
PDG's net profit was its first after four straight quarters of losses, and up from a 1.76 billion reais shortfall a year earlier, according to a securities filing late on Thursday.
Four analysts surveyed by Thomson Reuters predicted an average loss of 41.3 million reais in the quarter.
PDG has struggled to rebound from an aggressive and poorly managed expansion plan that led to huge cost overruns and project delays and has scaled back operations and refocused on major markets. Preliminary launch and sales figures released last month showed a rebound in demand, with cancellations down more than 50 percent from the prior three months.
Net sales totalled 1.2 billion reais in the fourth quarter, nearly doubling from a year earlier, while net revenue reached 1.8 billion, over 8 times higher than the final quarter of 2012.
Part of the quarter's positive results were from the 163 million reais sale of PDG's Domo Corporate office project.
"In 2014, we will continue focusing on reducing execution risk for projects launched before 2013, confirmed by the high number of units and worksites to be concluded in the next 12 months, which will reduce management complexity and positively impact our cash flow," PDG said in its earnings statement.
Earnings before interest, taxes, depreciation and amortization, a gauge of operating profit, rose to 289.9 million reais in the quarter from a 1.346 billion loss in the same period a year earlier. ($1 = 2.39 Brazilian reais) (Reporting by Asher Levine and Juliana Schincariol; Editing by Louise Ireland)
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