Q1 Profit For Hovnanian

Homebuilder Hovnanian Enterprises Inc has posted its first profit since 2006, helped by a tax benefit.  Details of Hovnanian's profit include:

• Net income of $236.2 million compared with a loss of $178.4 million a year earlier
• Revenue fell 14.5% to $319.6 million.
• A federal income tax benefit of $291.3 million resulting from the extension of a law that allows businesses to apply losses to prior income.
• The same extension has helped several other big home builders post profits recently.

According to Hovnanian's Chief Executive, the firm remains cautiously optimistic, while persistently high unemployment levels, the expiration of the federal homebuyers tax credit and the threat of more foreclosures continue to hinder a sustainable recovery in the housing market.