Submitted by Anonymous on Fri, 11/02/2007 - 06:27.
Housing builder, M.D.C. Holdings taking losses from housing slump
Denver home builder M.D.C. Holdings Inc. battled a "turbulent" housing market in the third quarter of 2007.
The builder suffered a net loss for the period ended Sept. 30 of $155.4 million, or $3.40 per diluted share. For the third period of 2006, M.D.C. (NYSE: MDC) posted net income of $48.7 million, or $1.06 a diluted share.
M.D.C.'s third-quarter revenue decreased to $686.7 million this year, compared to $1.08 billion for the same period of '06.
"Throughout these turbulent times for the home-building industry, we have remained focused on improving our investment-grade balance sheet, strengthening our financial position and enhancing our operating structure and processes, in preparation for an eventual recovery," Larry Mizel, M.D.C.'s founder, chairman and CEO, said in a statement.
The U.S. housing industry has suffered from the collapse of the subprime mortgage-lending market, causing many consumers to hold off on buying homes and builders to cut back on new construction. There also have been widespread layoffs in the construction, mortgage-lending and real estate sales industries.
Started in 1972, M.D.C. builds and sells houses using the Richmond American brand. Major markets include Colorado, Arizona, California, Florida, Illinois, Maryland, Nevada, Texas, Utah and Virginia. The builder also serves the Delaware Valley, which encompasses parts of Delaware, New Jersey, Maryland and Pennsylvania.
M.D.C. closed on the sale of 1,963 houses in the third quarter of this year, compared to 2,955 a year earlier.
The builder suffered a net loss for the period ended Sept. 30 of $155.4 million, or $3.40 per diluted share. For the third period of 2006, M.D.C. (NYSE: MDC) posted net income of $48.7 million, or $1.06 a diluted share.
M.D.C.'s third-quarter revenue decreased to $686.7 million this year, compared to $1.08 billion for the same period of '06.
"Throughout these turbulent times for the home-building industry, we have remained focused on improving our investment-grade balance sheet, strengthening our financial position and enhancing our operating structure and processes, in preparation for an eventual recovery," Larry Mizel, M.D.C.'s founder, chairman and CEO, said in a statement.
The U.S. housing industry has suffered from the collapse of the subprime mortgage-lending market, causing many consumers to hold off on buying homes and builders to cut back on new construction. There also have been widespread layoffs in the construction, mortgage-lending and real estate sales industries.
Started in 1972, M.D.C. builds and sells houses using the Richmond American brand. Major markets include Colorado, Arizona, California, Florida, Illinois, Maryland, Nevada, Texas, Utah and Virginia. The builder also serves the Delaware Valley, which encompasses parts of Delaware, New Jersey, Maryland and Pennsylvania.
M.D.C. closed on the sale of 1,963 houses in the third quarter of this year, compared to 2,955 a year earlier.
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