Text by Sarah Phelan
Lennar kicked off the first day of fall by reporting a $171.6 million third quarter fiscal loss for the period ending August 31. That’s more than double Lennar’s $89 million third quarter loss in 2008.
In a peppy press release posted at the corporation’s investor relations website, Lennar President and CEO Stuart Miller attributed his company’s 3Q loss to lower sales volumes and falling house prices.
“While high unemployment and foreclosures will continue to present challenges, consumer sentiment has significantly improved as homebuyers have recognized that the residential housing market is stabilizing,” he said.
“Assuming the economy continues to stabilize, we believe our improved sales environment, increasing pre-impairment gross margins and ability to leverage S,G&A [ selling, general and administrative expenses] should enable us to return to profitability in fiscal 2010,” Miller concluded.
That’s a pretty big assumption that Wall Street apparently wasn’t swallowing: it sent Lennar’s shares down 53 cents, or 3.2 percent, to $16.01 in yesterday’s midday trading.
Further casting doubt over Lennar’s hopes of a 2010 comeback is the fact that it’s still unclear if lawmakers will decide to extend a federal tax credit of up to $8,000 for first-time homebuyers which expires Nov. 30.