Brazil homebuilder PDG Realty books $37 million loss
SAO PAULO May 10 (Reuters) - PDG Realty SA, one of Brazil's biggest homebuilders, posted a first-quarter net loss of 73.8 million reais ($36.9 million) on Friday, as it continued to scale back operations and bring costs under control.
Two of four analysts surveyed by Reuters expected an average net loss of 38 million reais, while the other two predicted profit of 52 million reais. PDG earned 32.5 million reais in the first quarter a year ago.
Hit by runaway construction costs after an ambitious expansion plan that tripled the size of its operations in three years, PDG Realty has sharply scaled back new launches and stepped up deliveries in an effort to generate cash and pay down debt.
Deliveries rose to 4,051 units in the first quarter from 3,800 units in the same period the year before. Launches fell to 1,765 units from 3,231 units in the year-ago period.
PDG said it plans to deliver between 24,000 and 28,000 units in 2013, down from its previous estimate of 32,000 to 36,000 units. The company delivered 19,043 units last year.
Earnings before interest, taxes, depreciation and amortization, a gauge of operating profit, fell 24 percent from a year earlier to 137.9 million reais, missing the average estimate of 157.8 million reais in a Reuters survey.