Beazer Homes to cut expenses, offer discounts
Beazer Homes USA, Inc. (NYSE: BZH) CEO Ian McCarthy said the homebuilder is cutting expenses and offering discounts in order to survive the volatile housing market. The chief executive also told investors Tuesday morning at the Credit Suisse Homebuilder Conference that Beazer is committed to further downsizing if needed.
McCarthy told investors that the Atlanta-based company has cut $60 million in overhead costs and expects to realize $50 million in savings next year.
McCarthy said sales promotions that “hook” buyers will continue.
"I think this is something we have to accept," McCarthy said. "This is something that's part of the business today."
He said an action by the Fed—which cut short-term interest rates for the first time in four years today—would lower borrowing costs to encourage buyers.
He said Beazer will reach cost cutting targets by simplifying its design process and negotiating with suppliers.
In afternoon trading, BZH shares are up 13.83%, or $1.31, at $10.78. Over the last 52 weeks, shares have ranged from $8.10 to $48.60.
