Astroc swings to net loss 65.7 mln eur vs profit 61.9 mln UPDATE

Astroc swings to net loss 65.7 mln eur vs profit 61.9 mln UPDATE

	Published : Fri, 10 Aug 2007 08:57 By : Agencies Print this Story

(Updates with further details on figures)

MADRID (Thomson Financial) - Astroc Mediterraneo SA said it swung to a net loss of 65.7 mln eur in the first half to June from a 61.9 mln eur profit a year earlier, as heavy financial costs and provisions totaling almost 300 mln eur weighed on the bottom line.

In a statement, the property company said provisioning against costs related to land management, housing promotions and construction reached nearly 246 mln eur, compared with 88 mln a year earlier.

Financial costs stood at 48.7 mln eur, up from 2.2 mln.

The group swung to an EBITDA loss of 30.2 mln eur in the first half from a profit of 91.3 mln, while sales were up 32 pct at 239.7 mln.

Astroc flagged, however, that first half sales include the negative impact of cancelling four operations which had been put through the parent company's books in the year earlier period.

The company said it returned 51.2 mln eur corresponding to these four operations, noting that the cancellation offset the 20 mln eur sales registered by the parent in the first half of this year.

It said the 'exceptional situation of both the market and the company' was the reason behind these sales being cancelled.

Sales at the group's Landscape and Rayet divisions saved the day however, standing at 87.5 mln eur and 186.9 mln respectively.

But 'given market conditions and the need to be prudent,' Astroc noted that it has also cancelled two operations which contributed 44 mln eur to total sales in the first quarter to March.

Trading in the realtor's shares was suspended by stock market regulator CNMV ahead of the market opening.

The securities last changed hands at 10.71 eur each.

tfn.europemadrid@thomson.com

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