Residential Builder Lennar Reports Biggest Ever Quarterly Loss
- Jan 25, 2008
Miami–Miami-based homebuilder Lennar Corporation announced its largest quarterly loss Thursday–$1.25 billion in the forth quarter, the New York Times reports.Citing a decline in home prices and a writedown on company-owned land, Lennar also reported a $1.9 billion loss for last year. The company said it was trying to generate cash and cut inventory while taking heavy impairment charges because the market remained difficult.Lennar’s quarterly loss was $7.92 a share, compared with a loss of $1.24 a share–$195.6 million–in 2007. Revenue dropped 49 percent from $4.27 billion to $2.18 billion in the same period last year. Home deliveries declined 50 percent to 7,044 homes; new orders dropped 50 percent with a cancellation rate of 33 percent.In the fourth quarter, home sale revenue, when compared to the fourth quarter in 2006, was cut in half to $2 billion. The average home price also fell, dropping from $302,000 in 2006 to $291,000.