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Latest Business News

Lennar 1Q Profit Falls on Soft Market

Tuesday, March 27, 2007 4:01:30 PM
By ADRIAN SAINZ

MIAMI (AP) - One by one, some of the nation's largest homebuilders have seen quarterly earnings get crushed by the slump in the housing market.

Lennar Corp. became the latest victim Tuesday, with a 73 percent plunge in first-quarter earnings and predictions that it is going to fall short of 2007 earnings goals. Since the start of February, homebuilders KB Homes, Hovanian Enterprises Inc. and Toll Brothers Inc. all reported falling profits.

Stuart Miller, Lennar's president and chief executive, said a lack of demand for the winter-spring buying season, new problems with subprime lenders and higher-than-desired land costs hurt profits.


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