The company still expects its full-year earnings to top $6.50 a share. And, according to a statement issued by the homebuilder, "the revised first quarter expectations [still] represent more than as 35% increase over the first quarter of fiscal 2004."
"In spite of our continued success in sales activities, our deliveries in the first quarter will be less than anticipated because of the unprecedented precipitation in California," says Ara K. Hovnanian, the company's president/CEO. "The rainfall prevented us from staying on schedule to complete development activities. Further, power companies are focusing their efforts on repair work rather than new homes."
On another matter, Hovnanian yesterday said it would roll out a new concept for residents in the over-65 category. The company has been a leader in the trend toward active-adult community development, but is moving into a new age bracket.
The new multifamily residential concept, which the company is calling K. Hovnanian's Concierge Club, will be marketed as luxury condos with such hotel-style services as room service, laundry and housekeeping. Hovnanian is giving the concept its initial tryout at an under-construction apartment building the company recently acquired in Teaneck.
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