* Net income in third quarter 27 million reais
* New management team arrived in September
SAO PAULO Nov 15 Brazilian homebuilder PDG
Realty SA posted a 90 percent drop in third-quarter
earnings from a year earlier on Thursday as it cut back new
construction and struggled to finish old projects.
The company's net income of 27 million reais ($13.1 million)
in the quarter missed an average estimate of 41 million reais in
a Reuters poll of analysts. In the year ago
quarter the company earned 261.6 mln reais.
PDG slashed new project launches in half this year as it
struggled with delayed deliveries and cost overruns.
The company also brought in a new management team in
September led by Carlos Piani, a manager from the private equity
firm that provided a capital injection of nearly $400 million to
the company in August. PDG had posted losses in two of the three
quarters before the management change.
Third-quarter earnings before interest, taxes, depreciation
and amortization, a gauge of operating profit known as EBITDA,
fell 45 percent from a year earlier, when adjusted for stock
options, to 226 million reais. That exceeded an average estimate
of 215 million reais in the Reuters poll.
Brazil's financial markets were closed on Thursday for a