Meritage Homes has warned of several second-quarter charges relating to land option write-offs, which are expected to total in the $75 million to $80 million range. Company operations specifically in the Ft. Myers and Naples, Fla. areas continue to be “significantly challenged,” and the company expects to take $28 million in additional charges related to those areas.
The company will report full second-quarter earnings on July 26. Preliminary results show net revenue fell 37 percent to $569 million. Additionally, home orders declined 28 percent compared with last year's second quarter.
"As reported by other home builders, the housing market in general continues to be very challenging," said Steven Hilton, Meritage chairman and CEO. "Weak demand and high inventory levels have increased competition among home builders, pressuring margins despite reductions in new home starts, lot supplies and operating costs."
Meritage Homes builds single-family houses in Texas, Arizona, Colorado, Nevada, California and Florida.