Brazilian home builder reports strong second quarter
Sao Paulo-based Gafisa, one of Brazil’s largest home builders, saw strong second-quarter results, a sign of positive home-building industry growth in that country.
Net income was $16.9 million, up 67 percent compared with $10.1 million last year.
Net revenue was $139.8 million, up 75 percent from $79.8 million in the same period last year.
Wilson Amaral, CEO of Gafisa, said the company saw home pre-sales rise 57 percent in the quarter. He said the company plans to offer additional products, including “new financing options” to the Brazilian home buying market.
“This commitment, coupled with positive industry trends, strong brand recognition and a well-capitalized balance sheet, puts Gafisa in a sound position to continue to deliver rapid and sustainable growth,” he said.
“Gafisa continues to introduce innovative mortgage products to the market, facilitating greater consumer access to financing,” Amaral added. The company recently launched Blueprint Mortgage, a subsidiary that offers consumers a favorable rate with a long-term repayment option while reducing working capital requirements.
Gafisa has completed more than 900 housing developments in Brazil, in cities including Sao Paulo, Rio de Janeiro, Porto Alegre and Manaus.
Black & Decker second-quarter earnings down
Tool giant Black & Decker recorded second-quarter net earnings of $118 million, down 22.4 percent from $152.2 million in the same period last year. The earnings were at the high end of the company’s corporate guidance, according to a statement.
Sales were flat compared with last year at $1.7 billion.
“Black & Decker met our earnings expectations in the second quarter despite persistent challenges in the U.S. residential construction sector,” said Nolan Archibald, chairman and CEO. “Our international divisions…continued to deliver outstanding results, partially offsetting the domestic headwinds.”
Archibald said sales from the company’s power tools and accessories segment decreased 2 percent, while the company’s Price Pfister faucet business gained market share and grew sales at a double-digit rate.
“The Asian business and European industrial division continued to grow,” he added.
Archibald said the company predicts a continued weak housing industry “and significant commodity inflation [that] will continue to adversely affect our earnings comparisons.”
Litigation session scheduled for ProDealer Conference
Sam McDermott, a partner with Wood, Smith, Henning & Berman, will conduct a roundtable discussion on litigation risks at the 11th annual ProDealer Conference. His session is scheduled for Sept. 20.
McDermott specializes in defending LBM dealers, builders and contractors in mold-related claims, construction defect lawsuits and other liability issues. His presentation will address risk management items as well as insurance issues and how to respond to a lawsuit.
The ProDealer Conference, sponsored by Home Channel News, is scheduled for Sept. 19 to 21 at Loews Coronado Bay Hotel in San Diego. Networking events will include a night at the Padres game and a City of Hope golf tournament. For more information, visit www.prodealer.com.