Lennar Corp. (LEN) Posts Record Loss
Tough times in the national housing market led to a record loss of more than $500 million for Lennar Corp. in the third quarter, with drops in sales prices and home deliveries compounded by heavy charges to write down land values.
One of the nation's largest home builders said Tuesday it had cut its work force by 35 percent this year and that it expects to pare more employees soon.
"These continue to be very difficult times for the homebuilding industry," Lennar Chief Executive Stuart Miller said in a conference call.
Losses for the third quarter ended Aug. 31 totaled $513.9 million, or $3.25 per share, compared with a profit of $206.7 million, or $1.30 per share, in the 2006 period. The results included a charge of $3.33 per share related to valuation adjustments and writing off land option deposits, among other items.
Revenue fell 44 percent to $2.34 billion from $4.18 billion a year ago, primarily due to a 41 percent drop in the number of home deliveries and a 6 percent decrease in the average sales price of homes delivered in 2007.
Analysts surveyed by Thomson Financial had expected Lennar to post a loss of 55 cents per share on revenue of $2.39 billion. Wall Street estimates typically exclude one-time charges and gains, and predictions for homebuilders have varied wildly recently.
One of the nation's largest home builders said Tuesday it had cut its work force by 35 percent this year and that it expects to pare more employees soon.
"These continue to be very difficult times for the homebuilding industry," Lennar Chief Executive Stuart Miller said in a conference call.
Losses for the third quarter ended Aug. 31 totaled $513.9 million, or $3.25 per share, compared with a profit of $206.7 million, or $1.30 per share, in the 2006 period. The results included a charge of $3.33 per share related to valuation adjustments and writing off land option deposits, among other items.
Revenue fell 44 percent to $2.34 billion from $4.18 billion a year ago, primarily due to a 41 percent drop in the number of home deliveries and a 6 percent decrease in the average sales price of homes delivered in 2007.
Analysts surveyed by Thomson Financial had expected Lennar to post a loss of 55 cents per share on revenue of $2.39 billion. Wall Street estimates typically exclude one-time charges and gains, and predictions for homebuilders have varied wildly recently.
Labels: LEN, Lennar Corp.
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