SAO PAULO May 8 PDG Realty SA, one
of Brazil's biggest homebuilders, posted a quarterly profit of
2.8 million reais ($1.3 million) on Thursday, as cutbacks in the
scale of operations helped the company swing from a net loss of
73.8 million reais a year earlier.
The result marked PDG's second profit in a row after four
straight quarters of losses. Three analysts polled by Reuters
forecast a loss of 25.7 million reais, on average, while two
expected an average profit of 7.5 million reais.
PDG has struggled to rebound from an aggressive expansion
that led to huge cost overruns and project delays. The developer
has scaled back operations and refocused on major markets.
The company launched 130 million reais worth of new projects
in the quarter, down from 388 million reais a year earlier.
Contracted sales fell to 418 million reais in the first
quarter, from 881 million reais in the first quarter of 2013.
"We are still reducing the number of open work sites," PDG
said in its earnings statement. "Operational cash burn has been
falling from quarter to quarter and we expect to reach positive
cash flow over the course of the second semester."
Earnings before interest, taxes, depreciation and
amortization, a gauge of operating profit, rose to 195 million
reais in the quarter from 138 million reais in the same period a
($1 = 2.21 Brazilian reais)
(Reporting by Asher Levine and Juliana Schincariol; Editing by
Louise Ireland and David Gregorio)