Homebuilder Hovnanian Enterprises Inc. late Tuesday said its second-quarter losses grew tenfold from a year earlier on hefty charges amid the mortgage-fueled credit crunch.
For the quarter ended April 30, the family-run home builder reported a net loss of $340.7 million, or $5.49 a share, compared with a net loss of $28.1 million, or 49 cents a share, a year earlier.
Revenue was $776.4 million in the latest period, down 30 percent from $1.1 billion a year ago.
Despite a persistently challenging market environment, we successfully achieved positive cash flow one quarter earlier than we originally expected at the outset of the year, said Chief Executive Ara Hovnanian in a statement.
Through the combination of our recent capital market activity and increased cash flow expectations, we now believe that we have ample liquidity to weather the current downturn.
Red Bank-based company shares rose to $8.40 in after-hours trading as the company reported its seventh consecutive quarter with a net loss.
The company took $251 million in pre-tax charges in its fiscal second quarter, mostly from land impairments. Still, Hovnanian said it generated $56.1 million in cash during the quarter.