Meritage Homes swings to 1Q loss on drop in housing demand

Meritage Homes Corp. said Monday it swung to a first-quarter loss, as continued weak demand for housing sent its sales tumbling.

For the quarter ended Match 31, Meritage posted a loss of $45.3 million, or $1.72 per share, compared with a profit of $15.1 million, or 57 cents per share, for the same quarter in 2007.

Total closing revenue fell 35 percent to $373.4 million from $577.5 million in the year-ago period.

The recent quarter's results included $60 million of pretax charges for real estate-related and joint venture valuation adjustments.

Excluding those charges, the company said it posted a pretax loss from operations of $11 million, compared with a pretax profit from operations of $40 million in the first quarter of 2007.

Analysts polled by Thomson Financial expected a loss of $1.44 per share on $368.2 million in revenue.

"We are hopeful that government-led actions to assist current homeowners and prospective home buyers will help bring about a recovery in homebuilding sooner than would otherwise be realized," Steven J. Hilton, the company's chairman and chief executive, said in a statement. "Until then, we will continue to focus on responsible balance sheet management, while prudently seeking attractive opportunities to generate superior returns in the coming years."

The number of homes closed fell 26 percent to 1,328 units, while home closing revenue fell 35 percent to $371.7 million.

Sales orders fell 21 percent to 1,634 units, while sales order value dropped 34 percent to $420.2 million.

Meritage shares fell 29 cents to $21.54 in aftermarket trading, after rising $1.03, or 5 percent, to $21.83 in the regular session.