Lennar reports $120 million net loss in Q2
Lennar, the second largest U.S. home builder, on June 26 reported a net loss of $120.9 million in the second quarter, compared to a loss of $244.2 million in the same quarter last year.
Revenues fell 62 percent to $1.0 billion for the quarter, compared to $2.7 billion in 2007.
Deliveries of homes fell 60 percent to 3,830, while new orders slipped 45 percent to 4,396, and the value of Lennar's backlog sank 56 percent to $1.3 billion. On the positive side, the company said its unsold completed inventory was reduced by 70 percent in the quarter compared to 2007.
"Consistent with our expectations, the housing market has continued its downward trend throughout our second quarter," said Stuart Miller, president and CEO of Lennar. "Foreclosures have increased while higher unemployment and diminishing consumer confidence have defined overall economic weakness."
Miller urged the federal government to acknowledge the need for further reform and to institute programs designed to stabilize and facilitate the recovery of the housing market.
"With the U.S. housing inventory growing in excess of absorption and limited credit availability, the prospect of further deterioration in the home-building industry will likely become reality absent federal government action," he said.