Lennar’s earnings up 38.4% in Q3
Major national homebuilder Lennar Corporation reported revenues up 46% and earnings up 38.4% for the third quarter.
With total revenues at $1.60 billion for the quarter, growth was looking strong compared to 2012’s third quarter revenues of $1.09 billion.
Total net earnings for the third quarter attributable to Lennar Corporation were $120.7 million, up from year-ago figures of $87.1 million.
CEO Stuart Miller conceded that the company’s sales pace had moderated during the quarter, but cited a 14% increase in new home orders and a 16% increase in average sales price as a means toward increasing the dollar value of new home orders.
"We continue to see long-term fundamental demand in the market driven by the significant shortfall of new single-family and multi-family homes built over the last five years," said Miller. "While there may be bumps along the road that may impact the short-term pace of the recovery, the long-term outlook for our business remains extremely bright."
Miller was also optimistic about Lennar’s ancillary capital management business, Rialto, which has raised $640 million in capital.
KB Home’s revenues up 29% in Q3
KB Home reported growth in both revenue and income for the third quarter, with total revenue up 29% to $549 million, compared with a third-quarter 2012 reading of $424.5 million.
The average selling price of a home increased 22% to $299,100, year-over-year. This represents 13 consecutive quarters of year-ago gains.
Net income increased to $27.3 million, up drastically from year-ago figures of $3.3 million. When considering the nine-month period ended Aug. 31, net income went from a loss of $66.7 million in 2012 to a positive net of $11.8 million this year.
The company partially attributed the growth to its investment in land-constrained growth markets in higher-income areas.
"The fundamentals of the current housing recovery are firmly in place, supported by low inventory levels, an improving economy and positive demographic trends," said president and CEO Jeffrey Mezger. "Given these factors, we believe that the recent slower pace of the recovery caused by an uptick in mortgage interest rates is a temporary effect, and we expect to see steady upward demand for housing as consumers adjust to both higher rates and pricing. In balancing community count, sales pace and margin expansion in this environment, our revenues and net income improved substantially during the third quarter, while our net orders moderated. Nonetheless, we believe there is tremendous potential in our served markets and that we are well-positioned for future growth."
Apex Tool Group announces two new board members
Apex Tool Group has appointed two new executives to its board of directors.
Thomas Wroe Jr., Sensata Technologies’ chairman of the board and former CEO, will serve as chairman and will also be a member of the board’s Compensation Committee. Terry Klebe, retired Cooper Industries vice chairman and CFO, will serve as Chair of the Audit Committee.
"We’re very fortunate to attract such strong operational and financial leaders as Apex Tool Group continues to leverage global growth opportunities in the power and hand tool industry," said Steve Breitzka, CEO of Apex Tool Group, who also serves on the board. "I look forward to their invaluable contributions and guidance as we work to bring the business to a new level of performance, reputation and operational excellence."
Wroe is chairman of the board and former CEO of Sensata Technologies, a global sensing and protection solutions industrial manufacturer. He had a 34-year career with Texas Instruments, holding a variety of management assignments in operations, engineering, marketing, and business development across all of the businesses in TI’s Materials & Controls Division, where he was named president in 1995, and subsequently appointed senior VP of Texas Instruments in 1998. He currently serves on the board of directors of GT Advanced Technologies and the Chase Corp., and is chairman of the board of directors for Cape Cod Healthcare.
Klebe is the former vice chairman and former senior VP and CFO of Cooper Industries, a multinational industrial manufacturer acquired by Eaton Corp. in 2012. He was with Cooper industries for 16 years and retired in April 2011. Prior to that, Klebe held senior executive management roles in information technology, operations and finance, and before that was a partner with Ernst & Young. He currently serves on the board and Audit Committee of Fairchild Semiconductor International.