Beazer, in a press release Wednesday, cites slower-than-anticipated improvement in new-home orders after the expiration of the extended first-time homebuyers tax credit in April.
The company said prospective homebuyers continue to exercise caution in committing to a home purchase as general economic conditions still haven't showed enough improvement.
"Based on sales results through September 15th, the company now expects that new home orders will be between 700 and 800 homes for the fourth quarter of fiscal 2010, resulting in year-over-year new home orders that may be above or below fiscal 2009 results," Beazer Homes said.
Beazer Homes reported 3,438 orders for new homes through June 30, meaning the company expected fourth-quarter new-home orders of at least 767 homes, the company explained.
Previously, the company expected fiscal 2010 land and land development spending of between $200 and $220 million, but has revised that figure to below $200 million.
Still, Beazer Homes estimates home closings from continuing operations for fiscal 2010 to be about 4,600 homes, which would be a modest improvement over the 4,330 homes closed in fiscal 2009. It has also re-confirmed expectations that fiscal 2010 gross margins will be higher than comparable fiscal 2009 gross margins of 11.7% and that its cash balance at the end of September will be in excess of $500 million.
-- Written by Andrea Tse in New York.
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