RIO DE JANEIRO, Jan 14 (Reuters) - Brazilian homebuilder Gafisa showed a strong rebound in the fourth quarter of 2012 in new launches and sales, a regulatory filing showed on Monday, which the company said reflected the success of a year-old turn-around plan.
New project launches jumped by 156 percent in the fourth quarter of 2012 to 1.49 billion reais ($733.3 million) from the same period of 2011 while sales totaled 905 million reais, a rise of 167 percent.
Total new launches in 2012 totaled 2.95 billion reais, a 16 percent drop from 2011. Two thirds of sales in the full year of 2012 were of new launches while the remainder were sales of existing stock.
The turn-around plan announced a year ago scaled back project volumes sharply and suspended new launches at Gafisa’s troubled Tenda unit, which focuses on low-income housing.
But the fourth quarter showed an expansionary trend with increased new launches and sales.
“Our operational results in the fourth quarter presented improvements, with an increase in units delivered, and most significantly, the Gafisa Group generated cash from its core business,” Chief Executive Duilio Calciolari was quoted as saying in the filing.
Gafisa ended the year with a provisional 1.62 billion reais in cash and provisional net debts of 2.63 billion reais. Consolidated cash flow in 2012 was around 980 million reais, beating guidance of 600 million to 800 million, the filing said.