CORRECTED - CORRECTED-UPDATE 1-M/I Homes posts wider Q2 loss, to discontinue

(Corrects fifth paragraph to show company posted a loss of $9.09 a share, not a loss of 78 cents a share, after Reuters Estimates corrected its figures)

July 31 (Reuters) - Single-family home builder M/I Homes Inc (MHO.N) posted a wider quarterly loss, hurt by charges, and said it will discontinue the payment of cash dividends, sending its shares down as much as 7 percent.

"Demand is weak, consumer confidence is low and margins remain under pressure," Chief Executive Robert Schottenstein said in a statement.

The company posted a second-quarter net loss of $94.1 million, or $6.72 a share, compared with $42.6 million, or $3.05 a share, a year earlier.

The net loss includes $4.14 per share of non-cash valuation allowance against deferred tax assets and certain pre-tax charges of $1.77 a share, among others.

According to Reuters Estimates, the company posted a loss of $9.09 a share, excluding items, that was wider than analysts' average estimate of a loss of $1.48 a share.

Revenue fell 38 percent to $141 million, coming below analysts' estimate of $172.3 million.

"We anticipate that challenging conditions will continue for the balance of 2008 and, in all likelihood, through much of 2009," Schottenstein said.

Shares of the Columbus, Ohio-based company were down $1.46 at $19.40 in morning trade on the New York Stock Exchange. (Reporting by Eric Yep in Bangalore; Editing by Himani Sarkar)