Hovnanian reports year end loss of $672 million

Red Bank, N.J.-based homebuilder Hovnanian Enterprises reported a quarterly net loss of $248.8 million, compared with a $456.4 million loss for the same quarter in 2008. Net sales for the quarter were $437.4 million, down 39.4% from $721.4 million reported for the year-ago period.

For the year, the company reported a net loss of $672.02 million, compared with a loss of $1.16 billion as reported for 2008. Sales for the year were $1.6 billion, down 51.7% from $3.3 billion for last year.

The company reported net contracts were up 1% to 1,238 for the quarter. For the full year, net contracts were 5,227, down 20% from the previous year.

"For our fourth quarter we reported a year-over-year increase in net contracts, and for the fourth consecutive quarter we reported improvements in net contracts per active selling community, with an impressive 60% year-over-year increase during our fourth quarter," commented Ara Hovnanian, chairman of the board, president and CEO. "A trend of improvements in sales pace is yet another sign that the housing market is at or approaching a bottom."

Hovnanian is one of the nation’s largest homebuilders, with operations in 18 states. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes.