CORRECTED-Brazil builder Gafisa posts surprise 2nd-qtr profit

Fri Aug 10, 2012 7:16am EDT

(Corrects U.S. dollar conversion in 2nd graf)

* Net income of 1 mln reais breaks string of losses

* EBITDA nearly doubles from year earlier

SAO PAULO, Aug 10 (Reuters) - Brazilian homebuilder Gafisa posted an unexpected second-quarter profit on Friday as management works to turn the company around after a string of quarterly losses.

Gafisa reported net income of 1 million reais ($497,500), according to a securities filing, compared with a net loss of 31.8 million reais a year earlier.

Five analysts polled by Reuters forecast, on average, a loss of 21 million reais.

Earnings before interest, taxes, depreciation and amortization, a gauge of operating profit known as EBITDA, rose 92 percent from a year earlier to 149 million reais, adjusted for stock options, beating a forecast of 98 million reais.

Disappointing results are expected from rival Brazilian homebuilders in the coming week as falling sales and cost overruns erode profits after years of poorly controlled growth.

($1 = 2.01 Brazilian reais) (Reporting by Asher Levine; editing by John Wallace)

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

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video