Industry News
Lennar Earns $35.6 Million Profit in Fourth Quarter
01/13/2010
Lennar Corporation, one of the nation's largest homebuilders, last week reported a fourth quarter profit of $35.6 million, compared to a net loss of $811 million in 2008.
For its fiscal year ended November 30, 2009, the homebuilder lost $417.1 million, compared to a net loss of $1,109.1 million in 2008.
Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, "During the fourth quarter, the overall housing market continued to move towards stabilization as more confident homebuyers took advantage of increased affordability and the $8,000 federal tax credit. While we continue to adapt our business in light of the current economic landscape and its challenges, we are optimistic that homebuyers have recognized that the residential housing market is improving and will continue to take advantage of the extended housing stimulus."
Mr. Miller continued, "We continued to focus on the basics of our homebuilding operations, as we strategically position our company to return to profitability in 2010. We experienced the first year-over-year increase in new orders since our first quarter of 2006. Additionally, our fourth quarter results reflected a sequential improvement of 190 basis points in pre-impairment operating margin. This improvement was primarily driven by reduced sales incentives, lower construction costs and the successful rollout of our new value-engineered products."
The company said that fourth quarter home deliveries were lower than the same quarter in 2008. The average sales price of homes delivered decreased to $238,000 in the fourth quarter of 2009 from $262,000 in the same period last year. Sales incentives offered to homebuyers were $36,300 per home delivered in the fourth quarter of 2009, compared to $51,400 per home delivered in the same period last year.