Wednesday, December 12, 2007

H&R Block Expects Larger Loss of $502 Million

Dec. 12, 2007 (The Kansas City Star, Mo.) -- H&R Block Inc. said it lost a record half billion dollars in its fiscal second quarter, due largely to the increasing costs of closing its money-losing subprime mortgage lending arm.

In the same quarter a year ago, Block reported a loss of $156.5 million.

The Kansas City tax preparation and financial services giant also said this morning in a preliminary report that it would miss by a few days a deadline for formally filing its second-quarter results with the Securities and Exchange Commission. Block said it expects to file the report by Friday.

The company said that despite the setbacks, it still expected earnings for the full year ending April 30 to land in a previously projected range of $1.30 to $1.45 a share, though probably nearer the bottom of the range because borrowing costs are increasing.

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