SAO PAULO, March 23 Cyrela Brazil Realty SA,
Brazil's largest homebuilder, beat fourth-quarter profit
estimates and showed significantly improved cash flow on
Thursday, despite a surge in sales cancellations in the
In a securities filing, Cyrela reported net
income of 31 million reais ($9.9 million) last quarter, well
above the 17.7 million-real profit consensus estimate compiled
by Thomson Reuters.
Compared with the third quarter, profit more than doubled,
the filing showed.
Sao Paulo-based Cyrela, faced with slow declines in unwanted
inventory, has been trying to gradually ramp up new project
launches and contracted sales.
Cash flow from operations rose to 157 million reais in the
fourth quarter, reversing outflows of 28 million reais a year
earlier and 152 million reais in the third quarter.
Cyrela sold 3,758 units last quarter, 81 percent more than
in the year-earlier period.
Net revenue fell 11 percent to 919 million reais, however,
dragged down by the highest rate of sales cancellations in the
company's history. That still beat consensus estimates of 873.6
million reais for the fourth quarter.
The company booked 39 million reais in one-off charges
and an impairment of 5.4 million reais in the fourth quarter,
which weighed on its net profit.
Earnings before interest, tax, depreciation, and
amortization, a gauge of operating profit known as EBITDA, fell
34 percent to 95 million reais last quarter, missing a consensus
estimate of 116.3 million reais.
Management plans to discuss results at a conference call on
($1 = 3.1397 reais)
(Reporting by Ana Mano; Editing by Guillermo Parra-Bernal and