Souza Cruz Falls as Net Income Trails Forecast: Sao Paulo Mover

Souza Cruz SA (CRUZ3), the fourth-biggest tobacco company in the Americas, slumped after profit trailed analysts’ estimates as sales fell.

Shares slid 3.1 percent to 27.27 reais at 12:31 p.m. in Sao Paulo after earlier falling 3.6 percent in the steepest intraday drop since May 31. The Ibovespa stock benchmark retreated 0.9 percent.

Souza Cruz’s adjusted net income declined 2.8 percent to 435.7 million reais ($191.8 million) in the three months through June, according to data compiled by Bloomberg after the company released results yesterday following the close of markets. That compares with an average estimate of 445 million reais among three analysts surveyed by Bloomberg. Sales dropped 1.3 percent to 1.55 billion reais.

Shares have lost 12 percent this year, while the Ibovespa has declined 20 percent during the same period.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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