Cyrela Cuts 2012 Sales Forecast as Brazil Growth Slows
Cyrela (CYRE3) Brazil Realty SA Empreendimentos e Participacoes reduced its 2012 forecasts for contracted sales and gross margin after considering the country’s growth outlook, according to a regulatory filing.
Sao Paulo-based Cyrela reduced its 2012 contracted sales guidance to between 6.9 billion reais and 8 billion reais, the filing said. That compares with a forecast for contracted sales of 8 billion reais to 8.9 billion reais which the company announced on March 11 last year.
Cyrela sees its gross margin reaching 30 percent to 34 percent this year, while guidance released in March pointed to gross margin of 31 percent to 35 percent.
Brazil’s economy shrank 0.17 percent on an annualized basis in the third quarter, the first contraction since the collapse of Lehman Brothers Holdings Inc. in 2008, while industrial output has fallen for five of the last eight months.
Shares dropped 3.1 percent today to 16.18 reais while the benchmark Bovespa index advanced 0.5 percent to 63,072.31.
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