Orco Property Group has cut its full-year revenue outlook as the global financial crisis continues to hit Central Europe's housing markets. The Luxembourg-registered developer saw revenue rise 5.7% to EUR 225.6 miln in the first nine months this year from the year-earlier period but booked a net loss of EUR 29.8 mln compared to a profit of EUR 68.4 mln a year ago. At end-June, the company booked a net loss of EUR 14.1 mln
Orco Property Group has cut its full-year revenue outlook as the global financial crisis continues to hit Central Europe's housing markets. The Luxembourg-registered developer saw revenue rise 5.7% to EUR 225.6 miln in the first nine months this year from the year-earlier period but booked a net loss of EUR 29.8 mln compared to a profit of EUR 68.4 mln a year ago. At end-June, the company booked a net loss of EUR 14.1 mln
Orco, which develops projects in the Czech Republic, Poland and Slovakia among others, has cut its turnover outlook to EUR 300 mln from EUR 343 mln, due to lower than expected commercial development sales. In 2009, it forecasts 2009 turnover at a minimum EUR 277 mln, but added that this figure could be boosted to EUR 391 mln by as yet unsecured sales connected mainly to Polish projects and commercial developments .
The central European developer has been hard hit by the global credit crunch as lending conditions tighten, pushing Orco to move ahead with asset sales to cut debt and free up cash. Orco shares, which are traded in Prague, Warsaw, Budapest and Paris, have lost over 90% of their value since the start of the year. Earlier this month, Orco's chief executive and main shareholder Jean Francois Ott was forced to cut his stake to 1.6% from more than 10% after the bank that financed his holding group was forced to sell shares due to guarantees.
Orco has said it plans to sell assets worth EUR 200 mln this year, and on Thursday said it had already sold EUR 157 mln in assets at 96% of book value.
