Lennar Profit Plunge
Lennar, the No. 3 U.S. home builder, posted a 74 % plunge in profit on Tuesday and withdrew its earnings forecast.
Greater sales incentives; about $45,500 per home sold in Q1, compared with $13,800 a year earlier; squeezed gross margins to 15.6 % down from 24.9 % in Q1 2006.
The average sales price of a home fell 7 % to $303,000. Total revenue declined 13.8 % to $2.79 B. New orders during the quarter fell 29 % to 6,778 homes.
"There is so much product available for sale in the resale market, it's very difficult for home builders," JMP Securities analyst Jim Wilson said.
Do ya think its bad now?? Just wait till the the all time high inventories are truly bloated this summer...
Greater sales incentives; about $45,500 per home sold in Q1, compared with $13,800 a year earlier; squeezed gross margins to 15.6 % down from 24.9 % in Q1 2006.
The average sales price of a home fell 7 % to $303,000. Total revenue declined 13.8 % to $2.79 B. New orders during the quarter fell 29 % to 6,778 homes.
"There is so much product available for sale in the resale market, it's very difficult for home builders," JMP Securities analyst Jim Wilson said.
Do ya think its bad now?? Just wait till the the all time high inventories are truly bloated this summer...
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