Hovnanian Enterprises, Inc. (NYSE: HOV), the company that designs, constructs, markets and sells houses, announced the decrease of net contracts for new homes in its fiscal second quarter.
The drop constituted 29%.
But in spite of contracts’ shortage the company raised its forecast for positive cash flow in 2008 to more than $300 million.
Hovnanian Enterprises delivered 2,494 homes, down 21% from the year-earlier period, as subprime-mortgage crisis is still pressing upon U.S. residential housing market.
Hovnanian plans to book $225 - $275 million of pretax changes for the quarter related to land impairments and write-offs of predevelopment costs and land deposits.