This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

(Graphic: Business Wire)

Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil’s leading diversified national homebuilder, today announced operational results for the quarter ending June 30, 2012.

Duilio Calciolari, Chief Executive Officer, said: “The first half results indicate that our turnaround strategy is on track with improved operating performance. We are making progress against all of the targets which Gafisa Group set in the Business Plan for each brand. The Gafisa Group is generating cash from its core business; we have resold 62% of cancelled Tenda units within the 1H12 and achieved a 64% increase in unit deliveries in the 1H12, which is in line with full year guidance of 22.000 to 26.000 units.”

“First-half launches represent 34% of the mid-range of full-year launch guidance of R$2.7 to R$3.3 billion, and are in keeping with seasonally lower launches in the first six months of the year. Gafisa continues to experience good demand for middle and middle to high income products represented by the Gafisa and Alphaville brands, which led to sales of R$614.6 million during the quarter, with a consolidated sales velocity of launches of 51.6% in the first half. In keeping with a narrowed geographic focus, São Paulo accounted for 100% of the R$680.6 million launches in the Gafisa segment during the first half.”

Gafisa Group is Generating Cash From its Core Business

The Gafisa Group ended the second quarter with more than R$1.02 billion in preliminary cash and cash equivalents, a sequential improvement from the R$947.1 million at the end of 1Q12. Preliminary net debt was R$3.17 billion at the end of the 2Q12, a R$150 million reduction from R$3.32 billion as of the end of 1Q12. As a consequence, preliminary consolidated cash generation (cash burn) was positive at approximately R$150 million in 2Q12, leading to a 1H12 preliminary number of R$75 million. The operational consolidated cash flow reached approximately R$300 million in 1H12, 50% of the mid-range guidance for the full year.

1 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs