Bloomberg News

BR Malls Third-Quarter Profit Falls 90% on Currency Losses

October 28, 2011

(Adds analysts estimates, foreign exchange losses from second paragraph.)

Oct. 28 (Bloomberg) -- BR Malls Participacoes SA, Brazil’s biggest owner of malls, said profit dropped 90 percent in the third quarter, as earnings were “strongly impacted” by the real’s weakening in the period.

Net income fell to 9.33 million reais ($5.58 million), from 90 million reais in the same period last year, according to a regulatory filing. Profit excluding some items was expected to be 23.6 million reais, according to the average estimate of four analysts compiled by Bloomberg.

Excluding a net financial loss of 118.6 million reais related to Brazil’s currency drop, the Rio de Janeiro-based company had adjusted net profit of 92 million reais, according to the statement. Sales rose 67 percent to 219.3 million reais.

The real lost 17 percent against the U.S. dollar from the beginning of July to the end of September. The Brazilian currency traded at 1.5560 on July 1 before weakening to 1.8793 on Sept. 30.

BR Malls rose 3.9 percent to 18.50 reais in Sao Paulo trading today. The stock is up 8.2 percent since the beginning of the year, compared to a 14 percent drop for the Bovespa benchmark index.

--Editors: Helder Marinho, Jonathan Roeder

To contact the reporter on this story: Fabiola Moura in New York at fdemoura@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net


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