Wednesday, May 11, 2011

BEAZER HOMES LOSES $54.6M IN SECOND QUARTER

Beazer Homes USA, Inc., one of the biggest names in housing, announced that it lost $54.6 million in its second quarter on sales of $127.5 million.  That means their breakeven should have been around $182 million.  How would you like to be the one explaining that to the Board?  Good thing this isn't a Japanese company, you would be out the door.


Net new home orders decreased 26.7% compared to the same period of the prior year due to the absence of incentives similar to the First Time Homebuyers' Tax Credit that pulled sales into the first half of fiscal 2010.   Just proves that Government handouts really do work!  

The reduction in net new home orders from continuing operations was driven by a 24.8% decrease in gross new orders and an increase in the cancellation rate to 19.9% as compared to 17.8% a year ago. Net new home orders increased 121.1% over the first quarter of fiscal 2011 and 9.0% over the second quarter of fiscal 2009, both periods which did not include the impact of any special government incentive such as the tax credit.

The number of homes closed decreased 31.1% and homebuilding revenues from continuing operations decreased 35.7% as compared to the second quarter of fiscal 2010.

No comments: