SAO PAULO: 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 holiday.
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