SAO PAULO, Nov 10 (Reuters) - Tenda, the low-income division of Brazilian homebuilder Gafisa SA, expects sales cancellations to decline in 2015 as it delivers fewer of the less-profitable projects started in years past, Tenda Chief Financial Officer Felipe Cohen said on Monday.
“We are working intensely to reduce the level of cancellations,” Cohen said on a conference call with analysts to discuss third-quarter results on Monday. “We expect to deliver fewer legacy projects, and cancellations are linked to deliveries. We expect next year will show a notable reduction in cancellations.”
Gafisa posted a worse-than-expected third-quarter loss as income from the Gafisa division failed to make up for losses at Tenda.
Cancellations rose 9.6 percent from a year earlier at Tenda, while the Gafisa unit’s cancellations more than doubled.
Shares of Gafisa rose 2.12 percent to 2.41 reais in early afternoon trading on Monday. (Reporting by Asher Levine; Editing by Lisa Von Ahn)