M/I Homes 2nd-period orders fell 35%
`Most markets are challenging' and cancellations rise
BOSTON (MarketWatch) -- M/I Homes Inc. reported second-quarter contracts fell 35% and said the situation in most of its markets is difficult.
The Columbus, Ohio, home builder (MHO : M/I Schottenstein Homes, Inc.
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Last: 34.32-0.35-1.01%
9:41am 07/11/2006
MHO34.32, -0.35, -1.0%) said orders totaled 764 versus 1,172 in the year-earlier quarter.
New contracts were hurt "by a combination of factors, including reduced traffic, softening demand, increased cancellation rates and higher unsold inventory levels," Chief Executive Robert H. Schottenstein said in a statement.
"As evidenced by these factors, housing conditions in most of our markets are challenging," he added.
The company delivered 987 homes in the quarter, up from 853 a year earlier. At quarter's end, the company's backlog of homes awaiting construction was 2,889 units, down 13% from 3,310 units. In dollar value, the backlog is $1.03 billion, down 2% from $1.05 billion.
The company said it had 165 active subdivisions as of June 30, compared with 127 at the same point in the prior year.
Schottenstein said that it expects to deliver a record 4,500 homes in 2006.
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