2 Min Read
MEXICO CITY, Dec 4 (Reuters) - Mexican homebuilder Homex anticipated on Tuesday a decline of between 23 Percent and 24 percent in its 2013 consolidated revenue, factoring in a project to build two federal jails which has dragged the company's performance in recent months.
Excluding the jails, Homex sees next year's revenue flat versus 2012.
The Culiacan-based company said between 1 billion pesos and 1.2 billion pesos, out of a total of 10.6 billion pesos expected from the construction of the jails, will be accounted for in the first quarter of 2013.
These funds will not result in any penalty for Homex as the project was modified and will suffer a delay. In October, the company said it expected to have the jails done by December and start operating them in January. The new delivery status was not detailed by the company.
Apart from the construction of the federal facilities, Homex is also providing laundry, food and maintenance services at the jails.
Homex forecast 2013 cash flow should range between zero and negative 200 million pesos ($15 million) factoring in the jails. Excluding the project, cash flow is seen between 700 million pesos ($54 million) and 1 billion pesos ($77 million).
Homex shares slipped 0.67 percent to close at 29.59 pesos on Tuesday.