Lennar Posts Q2 Loss, Sees Further Housing Declines

June 26, 2008 5:27 p.m. EST

Miami, FL (AHN) - Homebuilder Lennar Corp (LEN) reported a smaller second quarter loss on Thursday than a year ago. However, the company said it still expects further deterioration in the housing market.

For the second quarter ended May 31, Lennar reported a loss of $120.9 million or 76 cents a share; compared with a loss of $244.2 million or $1.55 a share for the second quarter a year ago.

Revenue for the quarter declined 61 percent to $1.13 billion.

Analysts polled by Thomson Reuters were looking for a loss of 55 cents a share on revenue of $1.09 billion.

The company took a 60 cent per share charge in the second quarter for writedowns related to land option deposits. Without the writedowns, earnings would have been roughly 16 cents a share.

"The housing market has continued to deteriorate throughout the first half of 2008" said Chief Executive Stuart Miller, according to the Associated Press. "The prospect of further deterioration in the home-building industry will likely become reality absent federal government action," he said.

Miller said the company is reducing construction costs; selling, general and administrative costs dropped 60 percent from the second quarter a year earlier.

"We are confident that we remain well positioned with a strong balance sheet and properly scaled operations to navigate the current market downturn as a leaner and more efficient homebuilder." he said.

Shares of Lennar are off 7 percent, at $13.55.