Hovnanian swings to a loss in fourth quarter
Red Bank, N.J.-based home builder Hovnanian released its fourth-quarter and year-end financial report Dec 18.
The company reported a loss of $30 million for the quarter ended Oct. 31, a drastic swing from last year’s income of $136.3 million. Total revenues for the fourth quarter were $1.4 billion, down 20.3 percent from last year’s revenues of $1.6 billion for the same quarter.
For the year, the company reported a total loss of $20.9 million, down from last year’s income of $575.9 million. Sales were $4.8 billion, down 21.9 percent from last year’s sales of $6.2 billion.
The company reported it delivered 13,564 homes for the year, down 24.4 percent from last year’s deliveries of 17,940.
“Our industry is currently experiencing a cyclical correction,” said Ara Hovnanian, president and CEO. “However, after a very slow period for new sales contracts in October and November, we have experienced an improvement in sales pace during the first three weeks of December. This is encouraging given that December is historically a slower sales month.”
Hovnanian is one of the nation’s largest home builders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia.
Snap-on names new CEO
Kenosha, Wis.-based Snap-on has named president and COO Nicholas Pinchuk to the post of CEO, replacing Jack Michaels.
Pinchuk, 61, will continue to serve as president, while Michaels, 70, will remain chairman of the board, the company said.
“Nick’s leadership as COO reaffirms that he will guide the corporation’s continued success,” said Michaels.
Pinchuk has been with the company since 2002 and was named president and COO in April.
Snap-on is a global manufacturer and marketer of tools, diagnostics and equipment for professional users.
Pier 1 narrows losses in third quarter
Specialty retailer Pier 1 Imports greatly narrowed its losses in the third quarter to $9.96 million, an improvement over $72.72 million in losses in the same quarter last year.
Sales fell 7 percent to $374.2 million compared with $402.7 million in the same period last year.
Pier 1’s new president and CEO Alex Smith said the narrower losses resulted from a greater emphasis on sustainable margins and lower ticket impulse items in stores.
“We are pleased with our third-quarter margin results, which would have been higher had it not been for the clearance of our Pier 1 Kids merchandise,” Smith noted.
The retailer saw cost savings to the tune of $21.2 million on marketing expenses, $10.8 million in payroll savings and $5.4 million in savings on other general administrative costs.
Smith further said the retailer saw improvements in conversion rates and units per transaction, as well as in total transaction value.
“This is only the beginning; we still have a lot of work to do,” he said. “However, the fact that we achieved these results with less than perfect execution gives me great optimism about our ability to return to profitability and beyond.”