Red Bank, NJ, November 8, 2006--Homebuilder Hovnanian Enterprises Inc. said it expects to post a net loss in its fiscal fourth quarter, including charges totaling about $300 million.
Hovnanian said the about 50 percent of the charges are associated with inventory impairments, with the rest for land option deposit write-offs.
Analysts polled by Thomson Financial are expecting earnings of $1.07 per share for the quarter ended Oct. 31.
Excluding the charges, the company expects fiscal 2006 earnings between $4.85 and $5.25 per share, near the lower end of its prior outlook of between $5 and $5.75 per share.
Analysts are looking for earnings of $5 per share.
The company said it delivered 5,490 homes in the fourth quarter, bringing total deliveries in fiscal 2006 to 20,208 homes.
Net contracts for the quarter were 3,100, excluding unconsolidated joint ventures, down 36 percent from the year-ago quarter.
Hovnanian said the results reflect "a continued high level of contract cancellations, driven in part by the inability of buyers to sell their existing homes."
