Industry News

Home builder Lennar Corp. reports $514 million Q3 loss

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Home builder Lennar Corp. this week reported a net loss of $513.9 million, or $3.25 per diluted share, in the third quarter, compared with net earnings of $206.7 million, or $1.30 per diluted share, in third-quarter 2006. Stuart Miller, Lennar president and CEO, said in a statement that the company has slashed its workforce by about 35 percent and expects "continued reductions in the fourth quarter." Home orders dropped about 48 percent and home deliveries fell 41 percent in the third quarter compared to third-quarter 2006. The company had a cancellation rate of 32 percent in the third quarter, according to the announcement. "It is already well documented that the housing market has continued to deteriorate throughout our third quarter. Heavy discounting by builders, and now the existing-home market as well, has continued to drive pricing downward. Consumer confidence in housing has remained low, while the mortgage market has continued to redefine itself, creating higher cancellation r...