Huge Charges Hit Hovnanian

Hovnanian Enterprises(HOV Quote) swung to a fiscal fourth-quarter loss as bottom-line results were hit by big land impairment charges and write-offs, as well as weaker demand.

The Red Bank, N.J.-based homebuilder posted a loss of $115.3 million, or $1.88 a share, reversing a year-earlier profit of $168.1 million, or $2.53 a share. The results included charges of $141 million from walking away from land deposits and $174 million related to impairments.

Revenue for the quarter ended Oct. 31 slid to $1.75 billion from $1.77 billion. Homebuilding gross margins sank to 23.1% from 26.4% as the company had to cut prices and offer incentives to move inventory. ...