Hovnanian struggles in down market

Losses continued for New Jersey-based home builder Hovnanian Enterprises, as revenues fell by 34 percent for the quarter ending July 31, the company said yesterday.

Hovnanian reported losses for the eighth straight quarter, reaching $202 million on revenues of $716 million. In the same period a year ago, the company lost $80 million on revenues of $1.1 billion.

The company’s average home price in New York, New Jersey and Pennsylvania dropped 23 percent to $388,689, and 12 percent nationwide to $284,427.

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In a healthier market two years ago, during the same period, the company reported profits of $74 million on revenue of $1.5 billion.

President and CEO Ara Hovnanian said in a statement that the company’s positive cash flow could be used to buy low-priced properties.

“As we continue to compete against record foreclosures,” he said, “higher than normal levels of resale listings and poor consumer confidence, the housing market remains challenging.”

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