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THURSDAY, NOVEMBER 26, 2009
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Largest US Homebuilder Posts Biggest Losses Ever

Lennar stock drops after worse-than-expected earnings report

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(Newser) – The atrophied housing market has sent America’s largest homebuilder into even more of tailspin than expected. Lennar announced today it lost $513.9 million last quarter, or $3.25 per share—the worst losses in its 53-year history. Lennar says home discounting and the dismal mortgage situation will force it to cut more jobs to return to profitability, Bloomberg reports.

Revenue fell 44%, to its lowest point in 3 years. Miami-based Lennar has already cut 35% of its workforce, and sales have fallen for four straight quarters. The stock—already down 54% this year—fell as much as 6.5% on the news. Analysts say supply is outstripping demand as tougher mortgage standards drive off buyers.

A completed new home sits empty in the Lennar Corp. homebuilder housing development Destiny at Estrella Mountain Village, Tuesday, June 26, 2007 in Laveen, Ariz. Lennar Corp., one of the nation's leading home building companies, announced Tuesday it fell to a second-quarter loss as inventories of unsold homes increased and...
A completed new home sits empty in the Lennar Corp. homebuilder housing development Destiny at Estrella Mountain Village, Tuesday, June 26, 2007 in Laveen, Ariz. Lennar Corp., one of the nation's leading...   (Associated Press)
A company flag flies at the townhouse community of Milan by Lennar in Doral, Fla. in this Jan. 17, 2007 file photo. Lennar Corp., one of the nation's leading homebuilders, said Tuesday, June 26, 2007 it fell to a second-quarter loss as it managed high inventories amid dropping real estate...
A company flag flies at the townhouse community of Milan by Lennar in Doral, Fla. in this Jan. 17, 2007 file photo. Lennar Corp., one of the nation's leading homebuilders, said Tuesday, June 26, 2007...   (Associated Press)
Homes in various stages of completion dot the Lennar Corp. homebuilder housing development Destiny at Estrella Mountain Village, Tuesday, June 26, 2007 in Laveen, Ariz. Lennar Corp., one of the nation's leading home building companies, announced Tuesday it fell to a second-quarter loss as inventories of unsold homes increased and...
Homes in various stages of completion dot the Lennar Corp. homebuilder housing development Destiny at Estrella Mountain Village, Tuesday, June 26, 2007 in Laveen, Ariz. Lennar Corp., one of the nation's...   (Associated Press)
Signs direct customers to the sales office in the Lennar Corp. homebuilder housing development Destiny at Estrella Mountain Village, Tuesday, June 26, 2007 in Laveen, Ariz. Lennar Corp., one of the nation's leading home building companies, announced Tuesday it fell to a second-quarter loss as inventories of unsold homes increased...
Signs direct customers to the sales office in the Lennar Corp. homebuilder housing development Destiny at Estrella Mountain Village, Tuesday, June 26, 2007 in Laveen, Ariz. Lennar Corp., one of the nation's...   (Associated Press)
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