Reply #7: H&R Block reports $85.5 million 4Q loss [View All]

KANSAS CITY, Mo. - H&R Block Inc. swung to a fourth-quarter loss Thursday as the continuing struggles of its mortgage lending arm offset higher revenue in its tax and financial services divisions.

The company reported losing $85.5 million, or 26 cents per share, during the February-April period, which is when the nation's largest tax preparer sees the majority of its revenue. By comparison, the company earned $587.5 million, or $1.79, during the same period a year ago.

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H&R Block announced in April that it will sell its Option One Mortgage Corp. to a subsidiary of private equity firm Cerberus Capital Management LP by October 31. The price won't be final until the sale closes but it's expected the company will sell Option One at a discount.

Option One, which lends money to people with poor credit, has suffered as the so-called subprime market has been rocked as rising interest rates and declining home prices has forced more borrowers to default on their loans.

http://news.yahoo.com/s/ap/20070621/ap_on_bi_ge/earns_h_r_block