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| Lennar reports preliminary fourth quarter and fiscal year results Lennar Corporation, one of the largest home-builders in the U.S., has announced preliminary deliveries, new orders, backlog and selected financial results for the quarter and fiscal year ended November 30, 2006. The company delivered 14,006 homes and a record 49,568 homes, respectively, compared to 14,403 homes and 42,359 homes in the same periods last year, an increase of 17% for fiscal year 2006. New orders were 9,606 and 42,212, respectively, down 6% and 3%, compared to the same periods last year. Lennar's total dollar value of homes in backlog as of November 30, 2006 was $4.0 billion, compared to $6.9 billion as of November 30, 2005. Although deliveries increased during the fiscal year, Lennar experienced materially lower gross margins on home sales during the quarter and year ended November 30, 2006, compared to the same periods as last year, as a result of deteriorating market conditions in the homebuilding industry. Lennar said it expects fourth quarter earnings to be within a range of $0.70 per share to $0.75 per share. Subsequent to the valuation adjustments and write-offs, the company expects a loss within a range of $0.88 per share to $1.28 per share for its fourth quarter. Lennar will release earnings for the quarter and fiscal year ended November 30, 2006 before the market opens on January 17, 2007. Lennar Corporation also announced that it reached a definitive agreement to admit a new strategic partner into its LandSource joint venture. The transaction will result in a cash distribution to Lennar and its current partner, LNR Property Corporation, of approximately $660 million each. The transaction is expected to generate profits for financial statement purposes of approximately $500 million for Lennar, of which approximately $125 million will be recognized at closing and approximately $375 million will be deferred over future years. Lennar will also enter into option contracts with LandSource to purchase land contributed by the new partner and will retain its option contracts and rights of first offer to purchase land owned by LandSource prior to the transaction. LandSource had assets with a book value of approximately $1.3 billion, with its primary investment being The Newhall Land and Farming Company. Under the terms of the agreement, the LandSource assets are valued at approximately $2.6 billion, with a potential increase adjustment to that value of over $600 million. write your comments about the article :: © 2007 Construction News :: home page |