Beazer Homes Narrows Loss, But Revenue Tumbles

Atlanta, GA, Aug. 7, 2009--Beazer homes reported Thursday that its revenue sank by more than half, due to a 43 percent decline in home closings and a 9 percent drop in the average selling price.

Beazer lost $28 million, or $0.72 per share, in the three months ended June 30. That compares with a loss of $109.8 million, or $2.85 per share, in the same period a year earlier.

The latest results included a $55.2 million gain after the company took steps to reduce its debt.

Revenue declined 51 percent, to $224.7 million from $455.6 million.

During a conference call with Wall Street analysts, Beazer Chief Executive Ian McCarthy said low interest rates, tax incentives and more affordable homes helped spur the traditional seasonal pickup in sales during the quarter.

He also said a promotion in June that highlighted environmentally friendly features in the company's homes was a success.

"We are encouraged by signs that some housing market trends may be moderating both at the local and national level and further encouraged by our improvement in sales," McCarthy said, adding he expects orders over the next two quarters to be positive when compared to the same periods last year.

Beazer said completed home sales totaled 950, down from 1,677 in the year-ago period.