SAO PAULO Aug 13 Cyrela Brazil Realty SA
, Brazil's largest homebuilder, reported a 7.6 percent
drop in second-quarter net profit as new project launches and
Cyrela posted quarterly net income of 169 million reais
($74.1 million), compared with 183 million reais a year earlier,
according to a securities filing on Wednesday. The result was in
line with an average forecast of 172.2 million reais in a
Reuters poll of seven analysts.
The company is widely viewed as ahead of its peers in terms
of revamping its operations after aggressive expansion led to
huge cost overruns and big losses across the industry.
Profit took a hit in the quarter, however, due to fees for
the termination of land contracts and legal expenses for delayed
construction on some older projects.
"Despite being non-recurring events, impacts of this type
may occur again in coming quarters since there are still some
delayed constructions to be delivered," the company said in the
Cyrela launched 890 million reais worth of new projects in
the second quarter, down 49.5 percent from the same period a
year earlier. Sales dropped 42.3 percent to 1.26 billion reais,
negatively impacted by the soccer World Cup, which began in
mid-June, the company said in the filing.
Cyrela posted a gross profit margin of 33.4 percent in the
quarter, up from 32.6 percent a year earlier. Last year the
company estimated a gross margin of between 31 percent and 35
percent for full-year 2014.
Earnings before interest, taxes, depreciation and
amortization - a gauge of operating profit known as EBITDA -
fell 1.2 percent from a year earlier to 271 million reais,
missing the average estimate of 306.2 million reais in the
($1 = 2.28 Brazilian reais)
(Reporting by Asher Levine; Editing by Lisa Shumaker)