April 26, 2013 / 12:45 AM / 5 years ago

UPDATE 1-Mexican homebuilder Geo posts first-quarter loss

MEXICO CITY, April 25 (Reuters) - 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 year-earlier period.

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 2012.

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.

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