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UPDATE 1-Mexico's Geo sees higher profits in housing boom
Monday 11 July 2005, 5:39pm EST
MEXICO CITY, July 11 (Reuters) - No. 1 Mexican home builder Geo (GEOB.MX: Quote, Profile, Research) said on Monday it expects net profits to rise as much as 37 percent in the second quarter, as the company takes advantage of a housing boom.

Geo said revenues should reach between 2.22 billion pesos and 2.25 billion pesos ($206 million and $209 million) during the period, up from 1.76 billion pesos in the year ago period.

President Vicente Fox has made building homes for low- and middle-income Mexican families one of the corner stones of his administration. Home building companies are riding that wave and are among the top gainers on the Mexican bourse.

Geo said its net profit for the second quarter would rise in a range between 35 percent and 37 percent after it sold between 7,900 and 8,250 homes in the period. Geo sold 7,240 homes in the same quarter last year.

Geo said it reduced its net debt in the quarter by 2 percent.

Shares of Geo gained 0.18 percent on Monday to 27.46 pesos. Its stock is up 23 percent this year.

($1 = 10.7775 pesos at end June)