Mexico homebuilder Ara sees revenue drop in 2008
MEXICO CITY, Jan 21 (Reuters) - Ara, one of Mexico's leading homebuilders, warned on Wednesday that its 2008 results would be weaker than a year earlier as the Mexican economy has been hit by troubles in U.S. markets.
Ara (ARA.MX) said preliminary results show annual revenue last year at between 8.85 billion and 8.95 billion pesos ($640 million and $648 million), the company said in a statement to the Mexican stock exchange.
Ara said it sold between 20,900 and 21,000 homes in 2008.
In 2007, Ara reported revenue of 9.26 billion pesos and sold 23,781 units, according to the company website.
The company said its earnings before interest, tax, depreciation and amortization (EBITDA) margin in 2008 will be between 12.6 and 13 percent, compared to 23.4 percent a year earlier.
Ara and peers like Homex (HOMEX.MX), Urbi (URBI.MX) and Sare (SAREB.MX) were favorites among investors because of a boom in low-cost housing.
But as the financial crisis deepens and lenders curb credit to companies and individuals alike, housing firms face trouble finishing building or starting new developments.
Ara said it will report its fourth-quarter results on Feb. 23 after market close. ($1=13.8150 at end 2008) (Reporting by Mica Rosenberg and Tomas Sarmiento; Editing by Gary Hill)
