Hovnanian swings to Q1 profit

Red Bank, N.J.-based home builder Hovnanian Enterprises has reported first-quarter net income of $236 million, compared with a net loss of $178 million in the year-ago period.

Revenues for the quarter ended Jan. 31 were $320 million, down 14% from $374 million as reported for the same quarter last year.

The company also reported net contracts for the quarter at 912, down 5% from 961 last year. Home deliveries through unconsolidated ventures were 38, down from 75 reported for the same quarter last year.

"The first quarter saw the typical seasonal home buying patterns that we would expect," said Ara K. Hovnanian, chairman of the board, president and CEO. "Traffic and net contracts dropped off around the Thanksgiving holiday, and we began to see a pickup in traffic and net contracts during the last half of January and into February. In the first quarter, we continued to see a couple of positive year-over-year comparisons, including an increase in gross margins and an increase in net contracts per active selling community."