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Wednesday, July 02, 2008

UK's Largest Homebuilder Taylor Wimpey takes Land Write Downs

by CalculatedRisk

From Bloomberg: Taylor Wimpey Plunges After Failing to Agree New Investor Funds (hat tip Jonathan)

Taylor Wimpey Plc, the U.K.'s largest homebuilder ... will drop plans to pay a first-half dividend and cut 900 jobs, London-based Taylor Wimpey said today in a statement.
...
Taylor Wimpey, reeling from the worst housing slump in 30 years, risks breaching loan covenants next year if it doesn't win investor support.
...
The company is the first homebuilder to announce details of any U.K. land write downs and capital raising efforts since the start of the most widespread U.K. housing slump in 30 years. Taylor Wimpey has also been hurt by collapsing margins and sales at its Spanish and U.S. operations.

The builders in the U.K. are just starting the land write down process. It didn't help that Taylow Wimpey was building in several bubble markets (U.S., U.K. and Spain).