Orleans Homebuilders Inc. lowered its earnings forecast for the fiscal year that ends in June to a range of 25 cents to 45 cents a share.
Previously, the Bensalem homebuilder forecast earnings of $1.50 to $1.65 a share. The change is a sign of the housing industry's slump, with sales and prices declining.
The company's forecast for annual revenue was cut to between $690 million and $725 million from earlier estimate of $750 million to $780 million.
Orleans also said it lost $7.5 million, or 41 cents a share, in the second quarter, ended Dec. 31. That includes charges of $8.8 million relating to abandoned projects and other costs. In last year's second quarter, the company had a profit of $15.4 million, or 82 cents a share.