Lennar swings to a year-end profit
Miami-based home builder Lennar reported a fourth-quarter net income of $32 million, down 9.8% from $35.5 million for the same period last year.
Revenues for the quarter ended Nov. 30 were $761.3 million, down 11.1% from $856.4 million for the same period in 2009.
During the quarter the company reported home deliveries of 3,089, down 12% from the same period last year. New orders for the quarter were at 2,520 homes, down 5% from last year. The company reported a cancellation rate of 20% and a backlog of 1,604 homes, down 2% from the fourth quarter of 2009.
For the full 2010 fiscal year, the company reported net income of $95.2 million, compared with a net loss of $417.1 million for fiscal year 2009.
Revenues for the year were $2.7 billion, down 3.5% from $2.8 billion reported last year.
During the year the company delivered 10,955 homes and received 10,928 new orders, both down 5% from 2009. The company’s cancellation rate for the year was 17%.
“We are very pleased to report net earnings of $32 million for our fourth quarter, which despite the challenging housing market, makes it our third consecutive profitable quarter,” said Stuart Miller, president and CEO. “Our intense focus on construction costs, product re-engineering, and SG&A reduction all contributed to improved gross and operating margins year over year and a full year of profitability in fiscal 2010.”
Armstrong names new EVP building products
Lancaster, Pa.-based Armstrong World Industries has named Victor "Vic" Grizzle EVP, Armstrong Building Products, starting Jan. 17, 2011.
Grizzle, 49, has 23 years of experience in process improvement, sales, marketing and global business leadership. He comes to Armstrong from Valmont Industries, a $2 billion global leader of infrastructure support structures for utility, telecom and lighting markets, and manufacturer of mechanized irrigation equipment for large scale farming, where he was group president, Global Structures, Coatings and Tubing since 2005.
Prior to Valmont, Grizzle was president of the commercial power division of EaglePicher Corp., a $700 million diversified manufacturer and marketer of advanced technology and industrial products for space, defense, automotive, filtration, pharmaceutical, environmental and commercial applications. Before that, he spent 16 years at General Electric, progressing through a number of sales, marketing and technical leadership roles to general manager of Greater China Operations, GE Plastics, in 2001, and then to Americas Business Leader, Core Products GE Silicones, from 2003 to 2004.
"Vic has been consistently successful at driving growth, enhancing margins and controlling cost, a professional performance that gives me enormous confidence in his ability to take our Building Products business to the next level. His understanding of a diverse customer base, coupled with his global mind-set and strong leadership presence will help get us where we need to be internally and in the marketplace. I am very pleased he is joining the company during this challenging but exciting time," said Matthew Espe, Armstrong’s CEO.
84 Lumber sells property to REITs, keeps stores open
An article in the Buffalo News reported that 84 Lumber has sold several properties in New York State in lease-back arrangements that will allow the pro dealer to raise cash and continue to operate its existing lumberyards.
Hardy Management Co. has recently sold a location in Wheatfield, N.Y., to Spirit SPE Portfolio 2007-2 LLC, an entity owned by Spirit Finance Corp. of Scottsdale, Ariz., for $560,000, the newspaper reported. Spirit also paid $640,000 for a property in the town of Tonawanda on Military Road, and $900,000 for the Taylor Road store in Orchard Park.
In late April 2007, Spirit, an REIT that says it focuses on "single-tenant, operationally essential real estate," conducted a lease-back deal with 84 Lumber that involved 53 stores and one truss plant. Spirit purchased the property for $200 million, and a subsidiary of 84 Lumber signed an initial 20-year lease for the properties.