Hovnanian Enterprises experiences decrease of net contracts for homes in fiscal 2Q

Hovnanian Enterprises experiences decrease of net contracts for homes in fiscal 2Q
Hovnanian Enterprises experiences decrease of net contracts for homes in fiscal 2Q

Hovnanian Enterprises, Inc. (NYSE: HOV), the company that designs, constructs, markets and sells houses, announced the decrease of net contracts for new homes in its fiscal second quarter.

The drop constituted 29%.

But in spite of contracts’ shortage the company raised its forecast for positive cash flow in 2008 to more than $300 million.

Hovnanian Enterprises delivered 2,494 homes, down 21% from the year-earlier period, as subprime-mortgage crisis is still pressing upon U.S. residential housing market.

Hovnanian plans to book $225 - $275 million of pretax changes for the quarter related to land impairments and write-offs of predevelopment costs and land deposits.