British home builder Taylor Wimpey posts huge loss
Time is GMT + 8 hours Posted: 27-Aug-2008 16:58 hrs
Construction workers work on the rooftop of a new home under construction. Home builder Taylor Wimpey said that it suffered a massive first-half net loss of 1.419 billion pounds because of "challenging" housing markets in Britain, Spain and the United States.
Home builder Taylor Wimpey said Wednesday that it suffered a massive first-half net loss of 1.419 billion pounds because of "challenging" housing markets in Britain, Spain and the United States.
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Taylor Wimpey, which operates across all three countries, said in an earnings release that deteriorating property sectors had forced the group to write down the value of its land.
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The net loss, equivalent to 1.8 billion euros or 2.6 billion dollars, was recorded in the six months to the end of June, the group said. That compared with a net profit of 22.7 million pounds in the same period of 2007.
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Taylor Wimpey also faced a pre-tax loss of 1.542 billion pounds in the first half, which contrasted with a pre-tax profit of 18.3 million last time. Revenue grew 35 percent to 1.89 billion pounds.
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"The first half of 2008 has been characterised by the very challenging trading conditions in the UK, US and Spain," said group chairman Norman Askew in comments accompanying the release.
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Taylor Wimpey, like all British housebuilders, is battling a slump in the domestic housing market. The firm said last month that it would axe 900 jobs in Britain in a bid to cut costs.
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The group had failed last month to secure a refinancing package that would have raised new capital from existing and potential investors. — AFP
