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Housing Slump Pushes Lennar Losses Near $2B

MIAMI-Lennar reports a $1.3-billion loss for Q4 and a $1.9-billion loss for 2007 compared to a $195.6-million loss for Q4 2006 and 2006 earnings of $593.9 million.

By Natalie Keith | Updated on January 24, 2008

MIAMI-Still reeling from the housing market slump, locally based Lennar Corp. has reported a $1.3-billion net loss, or $7.92 per diluted share, for the fourth quarter and a $1.9-billion, or $12.31 per diluted share, net loss for 2007.

By comparison, Lennar reported a $195.6-million net loss, or $1.24 per diluted share, for the fourth quarter 2006 and net earnings of $593.9 million, or $3.69 per diluted share, for that year. Lennar’s fourth quarter and fiscal year ends Nov. 30. “2007 has been a very tough year for homebuilders,” said Lennar president and CEO Stuart Miller during a conference call Thursday. “Our fourth quarter results reflect a difficult and arduous realignment of our company with the current market conditions.”

Revenues from home sales decreased 51% in the fourth quarter to $2 billion from $4 billion in 2006. Revenues were lower primarily due to a 49% decrease in the number of home deliveries and a 4% decrease in the average sales price of homes delivered in 2007. New home deliveries decreased to 6,810 homes in the fourth quarter compared to 13,285 in 2006.

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