M/I Homes 4Q deliveries drop sharply |
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Thu, 11 Jan 2007 16:00
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COLUMBUS, Ohio (AFX) - M/I Homes Inc. said Thursday fourth-quarter deliveries slumped 16 percent, and the home builder reiterated its expectation that the housing slump will continue throughout 2007.M/I Homes said it delivered 1,363 homes in the last quarter, down from 1,616 in the year-ago period. For the year, deliveries dropped 4 percent to 4,109.A series of housing sector indicators fell sharply in 2006 after the industry enjoyed a record bull run the previous four years. The slump has prompted some builders to use large discounts to entice buyers, while others have written down the value of their land holdings, opting to take a book loss instead of trying to develop what it likely cannot sell.M/I had 353 new contracts in the fourth quarter, just more than one-third of last year's 901. The cancellation rate, or the number of orders canceled compared with total orders, shot up to 63 percent, well above last year's 27 percent and a sharp increase from the third quarter's 42 percent.'For the past six months, we have consistently stated that housing conditions are likely to remain challenging throughout 2007 and we see no reason to deviate from that belief,' CEO Robert Schottenstein said in a press release.Analysts are mixed on their prognoses for 2007, with some expecting a further declines and others saying the sector has reached bottom and will show signs of recovery.Shares of M/I Homes fell 34 cents to %34.93 on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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