Hovnanian Loss Grows in First Quarter

Red Bank, NJ, March 11, 2009--Homebuilder Hovnanian Enterprises Inc. posted a worse-than-expected loss for its fiscal first quarter and said the recently enacted government stimulus plan would do little to spur housing demand.

Hovnanian said that its loss for the quarter ended Jan. 31 widened to $178.4 million, or $2.29 a share, from a loss of $130.9 million, or $2.07 a share, in the same period last year.

Revenue fell 66% to $373.8 million.

"Given the lack of steps taken by the federal government to address housing demand, prospective homebuyers are still faced with making the decision to buy a home against an exceedingly difficult economic backdrop," Chief Executive Ara Hovnanian said in a press release.

The company said its orders declined 36% to 961 homes, while its cancellation rate improved to 31% from 42% in the previous quarter.