CULIACAN, Mexico, Dec. 4 /PRNewswire-FirstCall/ -- Desarrolladora Homex, S.A.B. de C.V. (Homex or the Company) [NYSE:HXM, BMV:HOMEX] today announced guidance for 2008.
"We foresee further market opportunities for Homex in a housing market that continues to show solid growth for the future years. The Company has an adequate product mix, diversified sources of financing for its clients and a geographic diversification nation-wide that will help Homex to keep gaining market share in 2008. The recent outlook provided by INFONAVIT, which estimates an approximately 33% increase in the total value for its 2008 mortgage program compared to 2007 and 3.2% increase from its previous 2008 base scenario, as well as the positive expectations on mortgage allocation from commercial banks, provides an excellent opportunity for Homex and further certainty to the housing market overall," commented Gerardo de Nicolas, Homex's Chief Executive Officer.
"These favorable housing market conditions are supported by an economic outlook that continues to be positive in terms of inflation rate, lower foreign exchange fluctuations and stable interest rate," added Gerardo de Nicolas.
Demand will mainly be driven by our potential clients' increasing numbers and purchasing power. Formal employment in urban cities is expected to grow 5.3% in 2008, equivalent to 789 thousand new jobs. According to OECD and the Bank of Mexico, unemployment is expected to be approximately 3.7% and GDP is expected to grow 3.4% during the year.
A diversity of mortgage products and initiatives, like the subsidy program designed to attend workers earning less than 4 times the minimum wage salary, will further consolidate in 2008, providing a stronger demand for the segment where Homex has a leading position. The Federal Government and its mortgage agencies, INFONAVIT, FOVISSSTE and SHF as well as commercial banks relying on the launch of new and innovative products to target both affordable-entry and middle-income markets will also play an important role in increasing housing opportunities and improving the quality of life of Mexican families.
For 2008, Homex expects revenues to rise in the range of 16% to 18% in real terms, while maintaining an efficient operation with an EBITDA(1) margin in the range of 24.0% to 25.0%, exceeding the 2007 performance.
The Company expects to sustain growth during 2008 and to post the highest growth rate in the sector.
1) Margin EBITDA is the result of dividing EBITDA by total revenues. EBITDA is defined as net income plus depreciation and amortization, net comprehensive financing cost, income tax expense and employee statutory profit sharing expense.
About Homex
Desarrolladora Homex, S.A.B. de C.V. is a leading, vertically integrated home-development company focused on affordable entry-level and middle-income housing in Mexico. It is one of the most geographically diverse homebuilders in the country. Homex has a leading position in the top four markets in Mexico and is the largest builder in Mexico, based on the number of homes sold, accumulated revenues and net income.
For additional corporate information please visit the Company's web site at: http://www.homex.com.mx/
Desarrolladora Homex, S.A.B. de C.V. press releases, quarterly reports and all other written materials may from time to time contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors can cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward- looking statements. These factors include economic and political conditions and government policies in Mexico or elsewhere, including changes in housing and mortgage policies, inflation rates, exchange rates, regulatory developments, customer demand and competition. For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our filings with the Securities and Exchange Commission.
