Lennar Corp. today joined a growing list of home builders that have cut their profit forecasts on a dismal housing market. Lennar expects earnings to be lower mostly because of increased sales incentives to unload inventory and land adjustments the company has made.

The company revised expectations for the third quarter, which ended on Aug. 31, with a new diluted earnings per share estimate of $1.25-$1.35 per share.

KB Home on Wednesday cut its full-year profit forecast, citing a challenging housing market and a decline in new home orders. And the National Association of Realtors Thursday lowered its 2006 forecast for home sales. NAR now expects existing home sales to fall 7.6 percent to 6.54 million, while new homes are expected to drop 16.1 percent to 1.08 million.

“The U.S. housing market has continued to deteriorate,” Stuart Miller, president and CEO of Lennar Corp., said in a statement Friday. “Given difficult market conditions, we have limited our land purchases while we have remained focused on even flow production and minimizing completed inventory.”

As a result, the company saw only a slight decline of 5 percent in preliminary net new orders for the quarter, Miller said. “However, increased sales incentives along with certain land adjustments were the primary factors in lowering our earnings per share estimate.”

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription