Rossi Reports Record Growth and Profit, Net Income Surges to R$109 Million

SAO PAULO, Aug. 13 /PRNewswire-FirstCall/ -- Rossi, one of Brazil's leading real estate developers and builders, announces its results for second quarter 2010. The company's net income for the period more than doubled to a total of R$109 million, an increase of 114% compared to second quarter 2009. Contracted sales were R$905 million, an increase of more than 79% compared to the same period last year.

The Company had R$1.1 billion in launches, an increase of 152% over the same period in 2009. The company launched 28 projects, totaling 6,470 units, of which 4,711 were from the economic segment. First half 2010 launches jumped 204% over the same period last year to R$1.9 billion.

Between April and June, VSO was 26%, marking the sixth consecutive quarter of growth. Total contracted sales were R$905 million, 79% higher than the same period 2009. "We registered consecutive records in contracted sales and in launches," said Rossi's superintendent director Heitor Cantergiani.

Gross margin was 16.8%, 3 percentage points better than the same period a year ago. EBITDA was R$159 million, a 77% increase compared to second quarter 2009. EBITDA margin was 24.5%, and ROE, annually adjusted, was 24.4% during the quarter.

"We posted good margins and record profit. This is the result of investments in construction techniques, geographical expansion and administrative efficiency," said Cassio Audi, CFO and IR Director. The company, he said, is poised to take advantage of the major growth potential of the civil construction market.

In second quarter 2010, Rossi Vendas , the brokerage unit, sold R$374 million, or 41% of total contracted sales. Present in Sao Paulo, Rio de Janeiro, Porto Alegre, Campinas, Fortaleza, Brasilia, Vitoria, Campo Grande, Goiania, Curitiba and Manaus, Rossi Vendas has continued its geographic expansion into 2010. "We are looking at opening new regional offices in Belo Horizonte and Salvador," said its director, Klausner Monteiro.

The results obtained in the period reflect recognition in relation to Rossi's products and differentiation. The company's diversified activities and its improved efficiency have generated opportunities for capitalizing on strong demand in all market segments.  In the economic sector, Rossi maintains a strategy of investing in standardized projects on a large scale in order to reduce the operational cycle and costs.

In order to expand further its geographical presence, Rossi created a new operating structure in early 2010. The company grouped local teams into 30 cells that operate regionally under national direction. Today, the company operates in 78 cities, which will expand to 120 by the end of 2011.

About Rossi

Rossi is one of Brazil's leading real estate developers and builders. The company operates in several segments of the real estate market and has in its portfolio numerous residential and commercial real estate successes in varying income brackets. The company has 30 years experience and operates in more than 70 cities in Brazil.

Based on values such as innovation, the value of people and sustainability, Rossi believes in building long-term relations with collaborators, customers, suppliers, partners and shareholders. Rossi understands that its mission goes beyond construction of residences and worksites. Its commitment is to life-long projects. Visit www.rossiresidencial.com.br or contact the company by cell phone or mobile portal: www.rossiresidencial.com.br/mobile .

SOURCE Rossi