Brasil Foods, Gol, OHL Mexico: Latin America Equity Preview
The following companies may have unusual price changes in Latin American trading. Stock symbols are in parentheses and share prices reflect the previous close.
The MSCI Latin America Index climbed 2.6 percent to 3,772.81, its largest advance since November 2010.
BRF - Brasil Foods SA (BRFS3) (BRFS3 BS): The world’s largest poultry exporter said second-quarter profit rose to 498 million reais ($306 million), or 57 centavos a share, from 171 million reais, or 20 centavos, a year earlier, the Sao Paulo-based company said yesterday. Brasil Foods was expected to report profit of 36 centavos per share excluding some items, according to the average of eight analyst estimates compiled by Bloomberg. The shares rose 2.7 percent to 28.95 reais.
Cia. de Saneamento Basico do Estado de Sao Paulo (SBSP3 BS): Brazil’s biggest water utility reported second-quarter net income of 479.6 million reais. The stock climbed 2.8 percent to 41.99 reais.
Cyrela Brazil Realty SA Empreendimentos e Participacoes (CYRE3) (CYRE3 BS): Brazil’s second-biggest homebuilder by revenue reported second-quarter net income of 96 million reais. The stock climbed 2.7 percent to 14.66 reais.
Elektro Eletricidade e Servicos SA (EKTR3) (EKTR4 BS): The Sao Paulo-based electric company named Marcio Henrique Fernandes Chief Executive Officer, following the resignation of Carlos Marcio Ferreira, according to a regulatory filing. The shares surged 9.9 percent to 22 reais.
Gafisa SA (GFSA3) (GFSA3 BS): The homebuilder cut its forecast for margins on its 2011 earnings before interest, taxes, depreciation and amortization, or ebitda, to 16 percent to 20 percent, according to a regulatory filing. The company previously estimated a margin of 18 percent to 22 percent. Gafisa reaffirmed its new projects forecast for the year of 5 billion reais to 5.6 billion reais. The stock jumped 7.3 percent to 7.35 reais.
Gol Linhas Aereas Inteligentes SA (GOLL4) (GOLL4 BS): Brazil’s second-largest airline, said its second-quarter loss widened to 358.7 million reais from 51.9 million reais a year earlier, the airline said in a statement on its website yesterday. The shares retreated 0.2 percent to 10.34 reais.
Petroleo Brasileiro SA (PETR4) (PETR4 BS): The state-controlled oil company’s biofuels unit will invest $2.5 billion up to 2015 to boost its biodiesel and ethanol production, according to an e- mailed statement. The stock added 2.4 percent to 20.21 reais.
Rossi Residencial SA (RSID3) (RSID3 BS): The Brazilian homebuilder reported second-quarter net income of 95 million reais. The stock rallied 6.9 percent to 11.35 reais.
Tereos Internacional SA (TERI3) (TERI3 BS): The sugar and ethanol producer posted net income of 63 million reais in its fiscal first quarter ended June 30, compared with a loss of 59 million reais in the same period last year. The shares jumped 3.3 percent to 2.49 reais.
Cia. General de Electricidad SA (CGE CC): The energy distributor said that the Marin and Almeria groups will end an agreement through which they controlled the company. Almeria and the Marin and Perez-Cruz families signed the shareholder agreement in November 2000, CGE said in a regulatory filing that didn’t give reasons for the breakup. CGE rose 3.4 percent to 2,363.8 pesos.
Lan Airlines SA (LAN) : Lan’s planned takeover of Tam SA was recommended for “approval without restrictions” by Brazil’s Finance Ministry. SEAE, as the Finance Ministry body in charge of analyzing possible mergers and acquisitions in Brazil is known, will now send its report to the country’s antitrust agency, which will make a final decision. Shares of Lan, Latin America’s largest airline by market share, climbed 2.5 percent to 11,396 pesos.
OHL Mexico SAB (OHLMEX* MM): A unit of OHL Mexico SAB obtained senior credit of 5.3 billion pesos ($429 million) and subordinated credit of 2.14 billion pesos to finance an urban toll road in Mexico City, according to a statement to the stock exchange. The shares climbed 3.2 percent to 23.72 pesos.
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