Brazil’s Tecnisa Drops to One-Week Low as Contracted Sales Slump
Brazilian homebuilder Tecnisa SA (TCSA3) dropped after saying contracted sales fell 46 percent in December and it didn’t meet a target for new projects in 2011.
The stock fell 3.5 percent to 9.89 reais at 12:41 p.m. in Sao Paulo trading, set for the lowest closing price since Dec. 28. The BM&FBovespa Real Estate (IMOBBV) index dropped 1.3 percent.
Tecnisa said in a regulatory filing yesterday that contracted sales fell to 403.3 million reais ($219.9 million) in December, which “surprised negatively,” according to analysts from Credit Suisse. The company’s new projects in 2011 totaled 2.12 billion reais, bellow the 2.2 billion reais target, the company said.
“Figures were weak,” Credit Suisse analysts including Guilherme Rocha said in a note sent to clients today. “Depending on the first-quarter sales performance, the company may be forced to review its 2.8 billion real launches guidance for the year, as it could add further pressure to its already high inventories.”
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