Homex Slips To Loss

(RTTNews.com) - Mexican home developer Desarrolladora Homex SAB de CV (HXM), Tuesday reported fourth-quarter net loss of 207.9 million pesos, or $16 million. This compares with net income of 55.6 million pesos in the same quarter a year ago.

On a per American Depositary Share, or ADR basis, loss for the quarter was $0.29, compared with profit of $.08 last year.

Revenues for the quarter totaled 7.98 billion pesos, or $614 million. This represents an increase of 21.5 percent from 6.57 billion pesos, or $505 million, a year earlier.

Housing revenues fell 4.4 percent from last year to 5.7 billion pesos, with home volumes down 9.3 percent.

Gross margin for the quarter shrank to 6.3 percent from 23.6 percent a year earlier, and costs escalated 49 percent to 7.47 billion pesos.

CEO Gerardo de Nicolas said, "The year 2012 was challenging and the last quarter was no exception. Throughout the year, we faced a number of challenges which are a reflection of the continuing evolution of the housing industry in Mexico into one that is more supportive of better planned communities that provide for a better quality of life for Mexican families..."

"We are also confident that the new Federal Government administration will continue to be supportive of the housing industry as demonstrated by the National Housing Policy recently announced, which we anticipate will provide greater support to higher density projects," Nicolas added.

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