UPDATE 1-Brazil's Brookfield expects to generate cash, cut debt by 2014
RIO DE JANEIRO Aug 15 (Reuters) - Brazilian homebuilder Brookfield Incorporações SA said on Thursday it expects its cash burn to come to an end in the third quarter and eventually turn to cash generation by the end of the year.
The company is at the beginning of a deleveraging process and will begin to reduce its net debt level in the fourth quarter, Chief Executive Officer Nicholas Reade said on a call with analysts to discuss second-quarter results.
The company late on Wednesday reported a net loss of 160.5 million reais ($68.6 million) for the second quarter as it continued to struggle with sales cancellations and cost overruns. Four analysts polled by Reuters had forecast, on average, a loss of 50.8 million reais.
Cash burn in the quarter totaled 71.5 million reais, down from 211.3 million reais in the first three months of the year.
Net debt to shareholder equity rose, however, to 116 percent from 106.8 percent in the first quarter.
At 4:05 p.m. (1905 GMT), shares of Brookfield were 1.06 percent higher in Sao Paulo at 1.90 reais after having spent most of the day in negative territory.
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