Beazer CEO: Market 'very weak'


The Atlanta Journal-Constitution
Published on: 05/17/08

Atlanta-based Beazer Homes held an earnings call with analysts Friday, a day after releasing new data showing continuing losses for the past two quarters.

A federal prosecutor is investigating Beazer's home-lending practices, a side of the business the company has since exited. And the Securities and Exchange Commission is investigating its accounting and other practices.

"Market conditions remain very weak," Ian McCarthy, Beazer's president and chief executive, told analysts. "We expect difficult market conditions to persist through the remainder of this fiscal year and into fiscal 2009."

The company said it would not answer questions about investigations or a class-action lawsuit.

"Our public filings to date speak for themselves," McCarthy said. "And until definitive resolutions have been reached, we are not going to be providing comment beyond what is contained in those filings."

NEW NUMBERS FROM BEAZER

Financial data provided during the conference call:

....................Qtr. ended....Qtr. ended....% change

....................March 31......March 31......year-over-year

....................2008..........2007

Home closings........$1.6 mil. ....$2.7 mil. ....-42.9%

Avg. sales price ....$255,000......$280,800......-9%

Total revenue........$405.4 mil. ..$823.6 mil. ..-50.8%

Source: Beazer Homes

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