Lennar Corp. (LEN)

Lennar Corp. (LEN) reported results for the fourth quarter ending November 30, 2007. Fourth quarter net loss was $1.3 billion, or $7.92 per diluted share. This loss included write offs and adjustments of $7.50 per share.

The pre tax write offs and adjustments are as follows:

Pretax valuation adjustments and other write-offs:

1) Morgan Stanley land transaction - $740.4 million
2) Land - $229.7 million
3) Option deposits and pre-acquisition costs - $217.6 million
4) Homebuilding - $224.8 million
5) Investments in unconsolidated entities - $277.3 million
6) Goodwill - $173.7 million

Management Comments

Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, "While we are hopeful that recent interest rate moves by the Federal Reserve and recent plans proffered by the Federal government will have a stabilizing impact on the housing market, market conditions remained depressed and, in fact, continued a downward slide through the end of our fourth quarter."

"Accordingly, our strategy has been to aggressively reconcile our asset valuations to the reality of existing market conditions and to remain primarily focused on cash generation by aggressively converting inventory into cash. As is reflected in our year-end numbers, we have taken meaningful steps along these lines."

Sphere: Related Content