Beazer Homes Posts Smaller Q3 Loss On Reduced Expenses

Atlanta, GA (AHN) - Beazer Homes reported Friday a smaller loss for the fiscal third quarter as the company aggressive cut spending in light of weakening revenue.

The homebuilder posted a third quarter loss of $109.8 million or $2.85 a share, smaller than the $118.7 million or $3.09 a share loss in the same period a year ago. Revenue fell to $455.6 million, down 40 percent form last year.

The company said it took a $95.5 million charge during the quarter due to land option contracts it did not exercise or renew.

Orders for new homes fell 42 percent in the third quarter to 1,774. Beazer said it saw closing rates decline across all its regions as nearly 37 percent of buyers opted out of their contracts.

"Despite lower home prices, relatively low interest rates, and a wide choice of available homes, potential home buyers remained reluctant amid concerns over slowing job growth, higher energy costs, and the overall economy," said President and CEO Ian McCarthy on a conference call.

Excluding one-time charges, the company saw gross margin rise to 10.6 percent in the third quarter from 6.4 percent in the second quarter of this year as the company pruned expenses in an effort to operate more efficiently.

Shares of Beazer Homes rose 2.8 percent to $6.10 on Friday.