SAO PAULO: Brazilian homebuilder PDG Realty SA posted a fourth-quarter net loss of 1.787 billion reais ($886 million) on Wednesday, saying it has nearly halted new construction while new executives scour its books to account for cost overruns and delivery delays.
Since taking the reins in August following a capital injection from private equity firm Vinci Partners, Chief Executive Officer Carlos Piani has shaken up senior management, combed through operations and drafted a new business plan.
After tripling the size of its operations in three years to become Brazil's biggest homebuilder in 2011, PDG has scaled back sharply as it struggled to stay within its budgets and timetables.
As part of its new business plan, the company said it aimed to work in fewer geographic regions in Brazil and focus mainly on low- and middle-income housing.
In an early Wednesday filing, PDG said it planned to deliver between 32,000 and 36,000 units in 2013 and 22,000 to 26,000 in 2014, compared with 19,043 last year and 23,082 in 2011.
The builder lost 1.357 billion reais before interest, taxes, depreciation and amortization, well below an estimate of 165 million reais in EBITDA in a Reuters survey of analysts.
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