MEXICO CITY, April 25 Mexican homebuilder Geo
reported a first-quarter loss on Thursday due to a
fall in house sales and rising financing costs.
The company reported a loss of 146.3 million pesos ($11.9
million), compared to a profit of 279.8 million pesos in the
Mexico's homebuilders, including competitors Homex
Development Corp and Urbi, have struggled
as the suburban lots they specialize in are shunned by buyers
increasingly keen on houses closer to city centers.
Geo said it sold 7,086 homes in the period, compared with
13,555 in the same quarter last year.
Revenues for the January to March period were 2.78 billion
pesos, down 37.9 percent compared with the first quarter of
The late implementation of a government subsidy for the
homebuilder sector also dented revenue, Geo added.
Earlier this month, the company said it had hired advisers
Fians Capital to help it restructure its debt.
Geo's shares closed up 5.07 percent at 6.01 pesos, before
the company reported its results.