The Atlanta-based home builder (NYSE: BZH) cut its workforce in October by 650 positions -- a reduction of 25 percent. Since reaching peak headcount levels in March 2006, overall headcount has dropped more than 50 percent through reductions in force and attrition. It now plans addition job cuts to save at least $30 million. Beazer also said it has reorganized accounting and back-office functions and is centralizing a number of marketing initiatives to achieve additional efficiencies.
In the fourth quarter, Beazer is expecting $230 million in non-cash pre-tax charges to abandon land option contracts, to recognize inventory impairments and to record impairments and land option abandonments in joint ventures. Beazer is also evaluating the recoverability of its goodwill, which could cause more impairment charges.
"The housing industry continues to face the most difficult business conditions in over a decade," said Ian J. McCarthy, Beazer president! and CEO. "We maintain the view that the long-term fundamentals for housing remain compelling and that our strategic initiatives to differentiate Beazer Homes in the eyes of the consumer and to allocate capital and resources in order to enhance long term shareholder value will position us well for the future. At the same time, we must continue to adapt to the realities of the current market by remaining disciplined in our operating approach and continuing to focus on initiatives aimed at responding to what we believe will continue to be a challenging environment in the near term."
In other news, Beazer's board of directors voted to suspend the company's quarterly dividend of 10 cents share to allow the company to conserve about$16 million in cash annually.
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Source: http://atlanta.bizjournals.com/atlanta/stories/2007/11/05/daily10.html?jst=b_ln_hl
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