Lennar Corporation, one of the nation's largest homebuilders, reported net earnings of $32 million in the fourth quarter. For the year, Lennar recorded a profit of $95.3 million compared to a net loss of $417.1 million a year earlier.
Revenues from home sales decreased 13% in the fourth quarter of 2010 to $725.8 million from $830.2 million in 2009. Revenues were lower primarily due to a 12% decrease in the number of home deliveries. New home deliveries, excluding unconsolidated entities, decreased to 3,060 homes in the fourth quarter of 2010 from 3,488 homes last year. The average sales price of homes delivered in both the fourth quarter of 2010 and 2009 was $238,000. Sales incentives offered to homebuyers were $33,700 per home delivered in the fourth quarter of 2010, or 12.4% as a percentage of home sales revenue, compared to $36,300 per home delivered in the same period last year, or 13.2% as a percentage of home sales revenue.
Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, "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. Our intense focus on construction costs, product re-engineering, and S,G&A reduction all contributed to improved gross and operating margins year over year and a full year of profitability in fiscal 2010."
Mr. Miller continued, "During the fourth quarter, we continued to contract for new, high-margin communities to bolster our profitability in 2011. These strategic land purchases utilize extremely conservative underwriting standards and should generate out-sized returns."
Mr. Miller concluded, "Although high unemployment, tight lending standards and low consumer confidence continue to present challenges for the housing industry, we are confident that 2011 will be another profitable year. Our homebuilding segment is on the right track to achieving sustainable profitability and our Rialto Investments segment will enhance our earnings as the housing market stabilizes and ultimately recovers."