Brookfield Homes had a rough last three months of the year like most other public home builders, losing $24 million for its fourth quarter ending Dec. 31, 2007.
On the other hand, in contrast to companies that have lost in excess of $1 billion in 2007, such as D.R. Horton, Pulte, and KB Home, Brookfield is looking comparatively healthy. The builder had profits of $16 million in 2007 and even declared a semi-annual dividend of $0.20 per common share payable on June 30, 2008.
The profit Brookfield reported was substantially lower than the $148 million the company recorded in 2006. The decrease in net income for 2007 was primarily due to impairment charges and write-offs on housing and land assets of $103 million, as well as lower home and lot sales. Gross margins were down to 17 percent in 2007 from 26 percent in 2006, as the average sales price of a Brookfield home dropped to $662,000 in 2007 from $679,000 in 2006.
Total revenue slid 33.1 percent to $583 million in 2007 compared to $872 million in 2006 and closings dropped 29 percent to 839 in 2007 from 1,181 in 2006.