Posted on 01/02/2007 9:37:46 AM PST by MeneMeneTekelUpharsin
Homebuilder Lennar Projects Fourth Quarter Loss, to Sell Stake in Joint Venture
MIAMI (AP) -- Lennar Corp., one of the nation's largest homebuilders, said Tuesday it expected a fourth-quarter loss as the company reevaluates how much its inventory is worth as the industry has been slowing. The Miami-based company expects a loss within a range of 88 cents per share to $1.28 for its quarter ended November 30 after a pretax charge of up to $500 million for the inventory evaluation. Official earnings for the quarter will be released before the market opens on Jan. 17. Prior to the valuation adjustments and write-offs, the company expects its fourth-quarter earnings to be within a range of 70 cents to 75 cents a share. "Market conditions continued to weaken throughout the fourth quarter and we have not yet seen tangible evidence of a market recovery," Lennar President and CEO Stuart Miller said in a statement. "Given the steep decline in many of our markets, we are completing our asset-by-asset review and will adjust asset balances to reflect fair value in the current market environment."
New home orders for the quarter were down 6 percent compared to the same period last year. Lennar also announced Tuesday it would sell a 62 percent stake in its partnership with LNR Property Corp. in their LandSource Communities Development LLC venture. Both Lennar and LNR will receive about $660 million each in the sale. MW Housing Partners will purchase the 62 percent stake but will have just 50 percent voting control of the venture, according to Lennar. Under the deal, Lennar and LNR will retain rights of first offer to purchase property owned by LandSource. LandSource's primary investment was with The Newhall Land and Farming Company, which owns 15,000 acres in a rapidly growing region about 30 miles north of Los Angeles, prime development territory as urban sprawl pushes outward from downtown.
Inquiring minds want to know...
Another one of those blinked and you missed it recessions. The pundits have predicted something like 40 recessions since 1929 and have been right like 6 times or something.
Maybe Lennar needs to relocate here. I'm gonna make 50% on my house I bought 3 years ago.
Yes, I'm moving to a different area.
Imagine how big their losses would have been if they built those houses with legitimate workers instead of illegal aliens.
Of course, if they used legitimate workers, they would have created more potential American homeowners, rather than alien welfare recipients.
Yeah, who is this "Lennar" anyway and what gives them the right to "talk down housing" like that? CNBC (genuflect) keeps telling me the housing market has bottomed!
and all those people that bought at the $60 to $70 range are going to want to throw themselves out a window. Marvelous.
Yeah, it is so bad the stock is up on this news.
Its been hillarous to watch CNBC turn on the housing market in a blink of an eye. When the housing stocks were hot, CNBC was a total shill for the housing market.
Now that many are predicting a continued major housing slowdown, CNBC is going to start trashing the home builders and running lots of stories about how equities will be the place to put your money in 2007, instead of buying real estate.
Right you are. It has doubled. Onward and upward.
The stock is up on this news? Today? Where do you buy your stocks, from people at the flea market?
Oh I forgot about Ford. That is Dec. 29th, not today. But you can get some real good stock deals at the fleamaket.
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