US homebuilder Lennar’s Q1 profit plummets

27 March 2007 17:46  [Source: ICIS news]

TORONTO (ICIS news)--Lennar, one of the largest US homebuilders, reported on Tuesday a 69% drop in its fiscal 2007 first-quarter operating earnings from homebuilding, citing the weak US housing market.

 

The company's chief executive also said that typically seasonally stronger spring selling had not yet materialised and it remained unclear when the market would recover.

 

US homebuilding and construction is a critical end-use market for chemical and plastics products, including polyvinyl chloride (PVC), paints, coatings, adhesives, fibres and insulation products.

 

Miami, Florida-based Lennar said its operating earnings from homebuilding fell to $140m (€105m) for the three months ended on 28 February, revenues dropped 14% to $2.8bn, and net earnings were $68.6m, down from $258.1m in the year-earlier period.

 

Lennar chief executive Stuart Miller said the US housing market continued to be weak and the situation was exacerbated by the problems in the US subprime lending market.

 

“Until we see prices stabilise […] we will not be able to project the timing or the scope of margin recovery, or set earnings goals for the company," Miller added.

 

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly