Lennar loss is smaller than expected

NEW YORK (Reuters) - Lennar Corp (LEN.N: Quote, Profile, Research) reported a quarterly loss on Thursday as deliveries of new homes and new orders tumbled, but the results were not as bad as expected and shares of the No. 2 U.S. home builder rose.

Chief Executive Stuart Miller said the U.S. economy was deteriorating rapidly and had slipped into recession.

The net loss came to $88.2 million, or 56 cents per share, in the fiscal first quarter ended February 29, compared with a profit of $68.6 million, or 43 cents per share, a year earlier.

Analysts on average had expected a loss of $1.15 per share, according to Reuters Estimates.

The latest results included a charge of 38 cents per share for valuation adjustments and write-offs.

The U.S. housing market has been in a tailspin for more than two years, hurt by falling prices and evaporating demand.

"The housing market has remained challenged throughout the first quarter of 2008, but what's also beginning to come clear is that the rest of the economy has now followed suit and I believe has now slipped into recession," Miller said on a conference call.

"The deterioration that took place so quickly in the housing market last year now seems to be happening at the same rapid pace in the overall economy."

Lennar said first-quarter deliveries fell 60 percent to 3,596 homes. New orders sank 57 percent to 3,045, but the cancellation rate improved to 26 percent from 33 percent in the previous quarter. Revenue dropped 62 percent to $1.1 billion.  Continued...