Home builder M/I Homes has withdrawn its full-year earnings guidance, citing persistent problems in the housing market and large one-time charges.
The company said it could take up to $75 million in charges in the second quarter, including $60 to $70 million in asset impairment charges.
The company will report official financial results for the second quarter on July 31. The company said the number of homes delivered in the period fell 24 percent to 755 homes from 987 last year, while new contracts fell 10 percent to 688 from 764.
“Conditions deteriorated in the second quarter as a result of the widely reported and well documented concerns over credit tightening and difficulties in the sub-prime market, excess inventory of new and used homes and weakening demand,” said Robert Schottenstein, CEO and president of M/I Homes.
Columbus, Ohio-based M/I Homes builds residences in the Midwest, the Mid-Atlantic region and Florida.