Hovnanian reports Q1 profit on tax benefit

NEW YORK (Reuters) - Home builder Hovnanian Enterprises Inc (HOV.N) on Tuesday posted its first profit since 2006, helped by a tax benefit.

Hovnanian, one of the 10 biggest U.S. home builders, reported net income of $236.2 million, or $2.97 per share, compared with a loss of $178.4 million, or $2.29 per share, a year earlier.

Revenue fell 14.5 percent to $319.6 million.

The first quarter's net income included a federal income tax benefit of $291.3 million resulting from the extension of a law that allows businesses to apply losses to prior income.

"Although we remain cautiously optimistic, several headwinds such as persistently high unemployment levels, the expiration of the federal homebuyers tax credit and the threat of more foreclosures continue to hinder a sustainable recovery in the housing market," said Chief Executive Ara Hovnanian.

The same extension has helped several other big home builders, including D.R. Horton Inc (DHI.N) and KB Home (KBH.N), post profits recently.

Hovnanian, based in Red Bank, New Jersey, has operations in 18 states.

(Reporting by Helen Chernikoff; Editing by Carol Bishopric and Richard Chang)