Profits drop 31% at Lennar
National home builder Lennar reported nearly flat sales for the third quarter of 2011, with revenues of $820.2 million, down 1% from the same quarter of 2010. Net income in the three months ended Aug. 31 were $20.7 million, down 31% from the $30 million earned in the third quarter a year ago.
The Miami-based home builder delivered 2,865 new homes, a decrease of 3% from the third quarter of 2010. New orders were up 11%, to 2,914 homes. The cancellation rate was 20%.
The company, which builds in 17 states, now has a backlog of 2,519 homes — up 16% from the third quarter of 2010.
Stuart Miller, Lennar’s CEO, noted that the company generated profits in all of its business segments, “despite operating in very challenging economic conditions."
Demand for home purchases is “slowly return[ing] to the marketplace, driven by low home prices and all-time low interest rates,” Miller said. “Limiting that demand is tight and tightening lending standards, high unemployment and low overall consumer confidence, which continue to weigh heavily on the purchase of new homes."
The company continues to focus on “efficient business practice” through its “Everything’s Included” program, product re-engineering and SG&A reduction, Miller said.
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Credit crunch and foreclosure rate limit builders
The National Association of Home Builders (NAHB) weighed in on the disappointing housing starts figures released Tuesday.
Nationwide housing starts declined 5% to a seasonally adjusted annual rate of 571,000 units in August.
"At this point, most builders are only looking to replenish their depleted inventories of new homes for sale, but otherwise holding off on new projects," said National Association of Home Builders (NAHB) chairman Bob Nielsen, a home builder from Reno, Nev. "While we would like to get more crews back on the job, we need to see solid improvement in consumer demand, greater access to credit for both builders and buyers, and a reduction in the number of foreclosed properties on the market before we can ramp up new production."
"Today’s numbers are completely consistent with NAHB’s forecast for the quarter, and are in keeping with the anemic economic and job growth we are seeing across most of the country," said NAHB senior economist Robert Denk. "That said, we continue to anticipate modest gains in new-home production through the end of this year with greater momentum building into 2013, and some pockets of improvement are already evident in about a dozen metros nationwide."
The decline in starts was primarily on the more volatile multi-family side, with single-family housing production edging down just 1.4%. Meanwhile, permits for new construction posted modest gains in both sectors.
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Jilted lottery player gets new roof
A California woman who thought she won the state’s $54 million lottery — and then discovered the local newspaper had printed the wrong winning numbers — is getting a new roof compliments of ABC Supply and Allstate Roofing.
According to an article printed in the Fresno Bee, Elida Betancourt, a 69-year-old retired fruit packer, had been playing California’s “Mega Millions” lottery for years when she saw her winning numbers published in the newspaper on July 14. After screaming, praying and gathering her relatives together, Betancourt vowed that the first thing she would do is fix her leaky roof.
The mix-up was discovered when her son went to a nearby liquor store and learned that the wrong numbers had been printed. Apparently the newspaper had obtained its information from the state lottery’s website, which was late in refreshing its results that week.
Mike Firpo, a managing partner of ABC Supply in Fresno, heard about Betancourt’s lost fortune from his neighbor, Will Fleet, publisher of the Fresno Bee. ABC Supply agreed to provide materials for a reroofing job at Betancourt’s house, while Allstate Roofing is doing the work — a project valued at about $12,000.
It would have been quite a
It would have been quite a good deed to have just tried and patch the roof well - these things are expensive. But to replace it, that's quite a heartfelt and moving response. Shame on the lottery as the poor woman could have had a heart attack. I would have.
Kudos to ABC Supply, and
Kudos to ABC Supply, and Allstate Roofing for stepping up and helping out someone in need. Just goes to show how compassionate the roofing industry is in California. Ross Riddle South Coast Shingle Co. Long Beach, CA