Brookfield Falls After Surprise Quarterly Loss: Sao Paulo Mover

Brookfield Incorporacoes SA (BISA3), the worst-performing Brazilian homebuilder in 2013, tumbled to a four-year low after posting an unexpected loss for a second consecutive quarter.

The shares sank 3.3 percent to 2.03 reais at 12:37 p.m. in Sao Paulo, the lowest since April 2009. The Ibovespa (IBOV) equity benchmark gained 0.2 percent.

Brookfield’s adjusted net loss was 47.7 million reais ($23.8 million) in the three months through March, according to data compiled by Bloomberg after the company released its earnings report late yesterday. The average estimate of six analysts was for a profit of 27.5 million-reais.

The quarterly results were “disappointing” and hampered by “problems in the construction of some projects, which caused an extra cost of 10.4 million reais,” the Rio de Janeiro-based homebuilder said in a regulatory filing. The company posted an adjusted net loss of 419 million reais in the fourth quarter of 2012 while analysts had forecast a 59.6 million-real profit, data compiled by Bloomberg show.

Brookfield slumped 41 percent this year, the worst performance on the BM&FBovespa Real Estate Index, which slid 10 percent.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at

To contact the editor responsible for this story: David Papadopoulos at

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