National Semiconductor; Hovnanian; Toll Brothers
National Semiconductor, maker of chips for the five largest mobile phone makers, Q1 net profit -7%, sales -1.3%.
CEO Brian Halla: "Customers are cautious about the economy and aren't going to build up inventories for chips this quarter."
Demand for mobile phones and other consumer electronics is cooling as shoppers curb spending amid slowing economic growth.
Hovnanian, NJ #1 home builder, net loss $203 million, revenue -40%, net contracts -38%, cancellations -32%.
Ara Hovnanian: "At some point soon, banks will take on more REO from smaller builders.
Banks don't want REO and will cut prices. That will be a factor in the next 12 months.
Ultimately that will benefit the public builders and generate a more typical, appropriate margin and assist us in getting back to operating profit more quickly."
Toll Brothers, #1 luxury homebuilder, 4th straight quarterly loss $29.3 million, revenue -34%, cancellations 19.4%; backlog -52%; net contracts -35%.
"Once the supply of foreclosed inventory is exhausted, we believe that favorable demographics will kick in and the housing market in general will begin to recover.
Unfortunately, we can't predict when that will occur." Alrighty then...
CEO Brian Halla: "Customers are cautious about the economy and aren't going to build up inventories for chips this quarter."
Demand for mobile phones and other consumer electronics is cooling as shoppers curb spending amid slowing economic growth.
Hovnanian, NJ #1 home builder, net loss $203 million, revenue -40%, net contracts -38%, cancellations -32%.
Ara Hovnanian: "At some point soon, banks will take on more REO from smaller builders.
Banks don't want REO and will cut prices. That will be a factor in the next 12 months.
Ultimately that will benefit the public builders and generate a more typical, appropriate margin and assist us in getting back to operating profit more quickly."
Toll Brothers, #1 luxury homebuilder, 4th straight quarterly loss $29.3 million, revenue -34%, cancellations 19.4%; backlog -52%; net contracts -35%.
"Once the supply of foreclosed inventory is exhausted, we believe that favorable demographics will kick in and the housing market in general will begin to recover.
Unfortunately, we can't predict when that will occur." Alrighty then...
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