Tags: Beazer | Homes | Loss | buyers | us | economy | tax

Beazer Homes Posts Bigger-Than-Expected Loss, Cuts Jobs

Tuesday, 03 May 2011 09:38 AM

Beazer Homes USA Inc. lost $54.6 million in its fiscal second quarter, weighed down by falling home values and rising foreclosures in the Las Vegas market. The homebuilder, which reported a decline in new orders and closings, also said it cut about 130 jobs.

Beazer said Tuesday its net loss amounted to 74 cents per share for the period ended March 31, compared with net income of $5.3 million, or 9 cents per share, a year earlier.

The current quarter included $17.9 million in charges related to further cuts in new home prices in Las Vegas and an increased amount of foreclosures.

The prior-year period had a $52.9 million gain tied to the partial exchange of junior subordinated notes.

Analysts surveyed by FactSet forecast a loss of 50 cents a share for the latest quarter.

Revenue dropped 34 percent to $127.5 million from $192.5 million. This fell short of the $149.5 million in revenue that Wall Street expected.

Shares of the Atlanta homebuilder slipped 6 cents to $4.50 in pre-market trading after falling as low as $4.20 earlier.

New orders dropped 26.7 percent to 1,194 homes, while closings fell 31.1 percent to 573 homes.

Beazer said its results were hurt in part because of the absence of the first time homebuyers' tax credit, which prompted some buyers to make purchases in the year-ago period.

But the company said orders were better in the second quarter than the first quarter.

"We are hopeful that the latest improvements in employment will help lift consumer confidence in the coming quarters, which is necessary for any significant recovery in housing to occur," President and CEO Ian McCarthy said in a statement.

In adapting to currently market conditions, Beazer announced last month that it created a new division to buy, upgrade and rent previously owned homes to consumers who aren't ready to purchase a house or who can't qualify for a mortgage.

The homebuilder is also cutting costs furthers through job cuts. Beazer, which has worked on lowering construction costs, overhead expenses and tightening land acquisition and development spending, expects the elimination of approximately 130 full-time jobs to save it more than $20 million annually. The cuts are also anticipates to lead to about $3 million in third-quarter charges tied to severance and lease abandonment.

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Beazer Homes USA Inc. lost $54.6 million in its fiscal second quarter, weighed down by falling home values and rising foreclosures in the Las Vegas market. The homebuilder, which reported a decline in new orders and closings, also said it cut about 130 jobs. Beazer said...
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