Hovnanian Quarterly Report

12/21/2007:

Hovnanian posts 5th straight loss

hoboken-k-hovnanian.jpgHovnanian Enterprises Inc., a big developer here in Hudson County, extended it’s streak of quarterly losses to five in a row, citing the increase of buyers who are canceling their contracts to buy new homes.

The company (HOV) lost $467 million dollars ($7.42 per share) in the quarter ending on October 31, 2007. This loss is $350 million more than the loss during the same period in 2006.

Despite the nearly half a billion dollar loss, the company remains optimistic, reporting $376 million of “positive cash flow” from the recent quarter, and is hoping to generate more than $100 more in fiscal 2008. CEO Ara K. Hovnanian said that he is “pleased” to have exceeded their expectations for cash generation in the fourth quarter and said that they paid their debt levels down more than originally anticipated. Hovnanian also said that sales so far during a typically slow December have improved slightly.

Not sure about you, but if I lost over $450 million dollars, it’d be hard sugar coat that news with optimism. But I guess I’d have no other choice. It’s along the same lines as: “I lost my job, my girlfriend dumped me, I misplaced the winning lottery ticket, but I saved money on my car insurance!”

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4 Comments on "Hovnanian Quarterly Report"

Friedupright
Member
Friedupright

Location will win out. It’s the last big property on the waterfront for Hoboken unless they start building out into the Hudson.

bri777
Member
bri777

I think this picture of Ara shows they got the increased cash flow by the reduction of oil used to slick back his hair.

rag246
Member
rag246

Maxwell is a good property. Like all RE it is grossly overvalued despite the writedowns in the banks, but it will fill…maybe at a discount, but not at a loss.

whewwhewwhew
Member

Hey 411 or any readers…

Any idea how Phase II & III of Maxwell Place is proceeding?

Will this building be half empty upon completion?

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