Beazer Homes Cuts $60 Million in Costs
Beazer Homes, said on Tuesday it has cut $60 million of overhead out of its business and expects to realize another $50 million in cost savings next year.
Beazer, the No. 7 U.S. home builder, like nearly all of the other large U.S. home builders has focused on cutting costs and strengthening its balance sheet in order to navigate the rough times the U.S. housing market is seeing.
Speaking at the Credit Suisse Homebuilder Conference, Chief Executive Ian McCarthy said the company would get to the target cuts in part by negotiating with its suppliers and simplifying its design process.
The company's inventory of completed unsold homes is down 26% from a year ago, McCarthy said, adding the company has been running promotions since June 2006 but did not need to run a promotion every week to bring in hesitant buyers and raise cash.
"We don't want to generate sales on prices that give us no return," he said.
McCarthy said he could not tell how long current tough market conditions would persist. Beazer shares were trading fractionally higher in morning trading , on the New York Stock Exchange.