UPDATE 1-Mexico's Homex posts 2.6 pct drop in 1st-qtr net

Mon Apr 26, 2010 7:15pm EDT

* Net profit declines 2.6 pct

* Company reaffirms 2010 guidance (adds home sales, accounting changes, stock quote)

MEXICO CITY, April 26 (Reuters) - Mexican homebuilder Homex HXM.N(HOMEX.MX) said on Monday its first-quarter net profit was 188 million pesos ($15 million), down 2.6 percent from the year-ago period following a change in accounting rules.

Revenues in the first quarter were 3.6 billion pesos, up 12 percent over the same quarter the year before.

Homex said it sold 9,777 houses during the quarter, down slightly from 9,859 in the year ago as it concentrated on more profitable niches in the social interest and medium-low segments.

In the first quarter, Homex is beginning to report current and past results using new accounting rules. Under the rules, companies recognize revenues and costs when the homes they build are legally transferred to customers. In the past, companies including Homex based their results on the percentage of completion of houses being built.

Homex reaffirmed its guidance of revenue growth between 12 percent and 14 percent this year and an EBITDA margin between 21 percent and 22 percent.

Homex shares ended down 0.37 percent at 64.30 pesos before quarterly results were released. (Reporting by Noel Randewich; editing by Carol Bishopric)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Retirement Road Map