Bloomberg News

Brazil Homebuilders Rally as PDG’s Third-Quarter Sales Rise

October 04, 2011

(Updates with closing prices in second paragraph.)

Oct. 4 (Bloomberg) -- Brazilian homebuilders rallied after PDG Realty SA Empreendimentos & Participacoes reported an increase in third-quarter sales, boosting the outlook for the industry.

PDG, Brazil’s largest homebuilder by revenue, gained 4.1 percent to 6.10 reais at the 4:15 p.m. New York time close. Rival MRV Engenharia & Participacoes SA increased 6.3 percent to 9.67 reais. The benchmark Bovespa index declined 0.2 percent.

PDG said contracted sales rose 3.3 percent from a year earlier to 1.91 billion reais ($1 billion), according to a regulatory filing after the close of trading yesterday. That surpassed Credit Suisse Group AG’s estimate of 1.7 billion reais, according to a note to clients from analyst Guilherme Rocha.

“The company once again surpassed our estimates with its high pipeline of launches and strong sales performance,” Rocha wrote. “We remain positive on PDG.”

Rossi Residencial SA, Brazil’s sixth-biggest homebuilder by revenue, jumped 7.4 percent to 8.98 reais while Cyrela Brazil Realty SA Empreendimentos e Participacoes, the second-biggest, increased 1.6 percent to 11.40 reais.

--Editors: Richard Richtmyer, Glenn J. Kalinoski

To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net


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