Brazil's Cyrela sees profit drop, in line with estimates
SAO PAULO Aug 13 (Reuters) - Cyrela Brazil Realty SA , Brazil's largest homebuilder, reported a 7.6 percent drop in second-quarter net profit as new project launches and sales declined.
Cyrela posted quarterly net income of 169 million reais ($74.1 million), compared with 183 million reais a year earlier, according to a securities filing on Wednesday. The result was in line with an average forecast of 172.2 million reais in a Reuters poll of seven analysts.
The company is widely viewed as ahead of its peers in terms of revamping its operations after aggressive expansion led to huge cost overruns and big losses across the industry.
Profit took a hit in the quarter, however, due to fees for the termination of land contracts and legal expenses for delayed construction on some older projects.
"Despite being non-recurring events, impacts of this type may occur again in coming quarters since there are still some delayed constructions to be delivered," the company said in the filing.
Cyrela launched 890 million reais worth of new projects in the second quarter, down 49.5 percent from the same period a year earlier. Sales dropped 42.3 percent to 1.26 billion reais, negatively impacted by the soccer World Cup, which began in mid-June, the company said in the filing.
Cyrela posted a gross profit margin of 33.4 percent in the quarter, up from 32.6 percent a year earlier. Last year the company estimated a gross margin of between 31 percent and 35 percent for full-year 2014.
Earnings before interest, taxes, depreciation and amortization - a gauge of operating profit known as EBITDA - fell 1.2 percent from a year earlier to 271 million reais, missing the average estimate of 306.2 million reais in the Reuters survey.
($1 = 2.28 Brazilian reais) (Reporting by Asher Levine; Editing by Lisa Shumaker)
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