SAO PAULO, April 11 Brazilian homebuilder
Brookfield Incorporações SA posted a fifth straight
quarterly loss, missing analyst estimates by a wide margin, as
the troubled homebuilder continued to struggle with sales
cancellations and asset impairments in the fourth quarter.
The result leaves Brookfield behind its peers as it
struggles to return to profitability following an overly
aggressive expansion plan that led to hefty cost overruns and
The company booked a net loss of 424.97 million reais ($193
million) in the fourth quarter, compared with a revised
shortfall of 29.59 million reais a year earlier, according to a
securities filing late on Thursday.
Three analysts polled by Reuters had forecast a 23.7 million
reais loss in the period, on average, while one analyst had
forecast a 3 million reais profit.
Net revenue tumbled 30 percent to 570.9 million reais on a
year-on-year basis after sales suffered. Inflation and more
expensive property development continued to weigh on the
company, with costs related to real estate development and sales
climbing 7.5 percent to 644.75 million reais in the quarter from
the same period a year earlier.
Net debt edged up to 146.8 percent of shareholder equity in
the fourth quarter, compared with 97.7 percent in the
year-earlier period. Cash holdings dropped 23 percent in the
Management plans to discuss fourth-quarter earnings in a
conference call with analysts later on Friday.
Brookfield posted losses before interest, taxes,
depreciation and amortization of 385.76 million reais, compared
with an average estimate of a gain of 104 million reais in the
Reuters survey. The gauge is known as EBITDA and measures the
ability of a company to generate profits from its operations.
In February Brookfield announced that its controlling
shareholder, Brookfield Brasil Participações, plans to buy out
minority shareholders and delist the company from the
BM&FBovespa stock exchange. The company will hold a shareholders
meeting on April 14 to discuss the proposal.
Brookfield shares are down about 43 percent over the past 12
($1 = 2.20 Brazilian reais)
(Reporting by Asher Levine; Writing by Guillermo Parra-Bernal)