Hovnanian narrows loss in Q4, shows gains for year
Red Bank, N.J.-based home builder Hovnanian reported a fourth-quarter net loss of $132.1 million, compared with a loss of $250.7 million for the same period last year.
Revenues for the quarter ended Oct. 31 were $353 million, down 19.2% from $437.3 million.
During the quarter, the company delivered 1,204 homes, compared with 1,444 homes delivered during the prior year’s fourth quarter. Net contracts for the quarter decreased 13% to 1,078 homes compared with last year.
For the year, the company reported net income of $2.5 million compared with a loss of $716.7 million for 2009.
Revenues for the year were $1.37 billion, down 14% from $1.59 billion reported for 2009.
Deliveries for the year declined 12% to 4,729 compared with 5,362 home deliveries in 2009. Net contracts for the year decreased 20% to 4,206 compared with 5,227 net contracts in the prior year.
"In spite of strong long-term demographics, the current housing market remains quite challenging. The combination of a lackluster job market and high foreclosure activity is clearly having a dampening effect on the housing market. The only silver lining is that we continue to find land acquisition opportunities, which we believe will yield appropriate returns at today’s home prices and sales paces," commented Ara K. Hovnanian, chairman, president and CEO. "Even without a general housing recovery, we are optimistic that as the percentage of deliveries from newly identified communities increases, our overall performance should continue to improve."
Ashby Lumber plans expansion
According to an article in the Contra Costa Times, a two-unit pro dealer will expand its North Concord, Calif., location into a neighboring property and add a couple of buildings.
Ashby Lumber opened in 2002 in North Concord, Calif. The company also operates a Berkeley, Calif., location.
Zeeland Lumber Holdings launches expansion
Zeeland Lumber Holdings acquired the former North Pacific distribution facility near M-6 and US-131 in the city of Wyoming, Mich.
The move will allow the Zeeland, Mich.-based pro dealer to move its Hamilton Truss operation to double its production while expanding into new areas, the company announced. The Hamilton Truss division will be moving to the new location at 5836 Clay Ave, Wyoming, Mich. Other areas of production will be floor trusses, wall panels and building components. The company said the move will add up to 40 jobs over the next three years to support the growth and expansion.
Hamilton Truss is a component manufacturing company serving residential and commercial construction. Its merger with Zeeland Lumber and Supply Co. in 2009 has allowed for growth in this market. Zeeland Lumber and Supply and Hamilton Truss are divisions of Zeeland Lumber Holdings.
Zeeland Lumber and Supply received the 2007 Home Channel News "Independent Pro Dealer of the Year" award. The company will continue to operate its Concepts Store in Hamilton.