Taylor Wimpey warned that it would make further provisions in the US as the country’s worst housing downturn for 16 years continued to bite. The Times, Daily Telegraph
The housebuilder, formed this year by the merger of George Wimpey and Taylor Woodrow, said it would make provisions for 15% of its capital employed in the US, which Simon Brown, an analyst at Evolution, estimated would amount to $87m (£42m).
The company added that it expected 2007 completions in the UK to be 5% lower than the 2006 proforma level.
“It will come as no surprise to hear that the US is bad,” said Peter Redfern, chief executive. “Things have deteriorated in late summer and the credit crisis provided another knock,” he added.
The overall impact of the review will be to reduce reported profit for the year by £38m.