Brookfield Homes reports 94% Q3 profit plunge

Brookfield Homes Corp. (NYSE: BHS) announced after Friday’s closing that its third-quarter plunged 94% to $1.6 million, or $0.06 per share, from $27.6 million, or $1.03 per share, a year earlier. The Fairfax, Va.-based firm blamed the income drop on impairment charges and writedowns on housing and land assets of $41 million. Additionally, lower home and lot sales hurt earnings.

New home sales for the three months ended Sept. 30 fell to 130 units, from 264 in the year-ago period. Quarterly lot sales fell to 21 units, from 158 during the same period of 2006. The residential homebuilder and land developer is targeting 1,000 home closings for 2007. Brookfield closed 179 homes during the quarter, from 232 units a year earlier.

“Homebuyer confidence remains weak and it is expected this will continue until a balance of supply and demand is achieved in the market,” CEO Ian Cockwell said in a statement.

Brookfield’s (BHS) quarterly revenue declined to $120.8 million, from $175.5 million a year earlier.

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