Lennar profit drops nearly 50% as supply chain snag hits deliveries -Breaking
(Reuters). – U.S. housebuilder Lennar On Wednesday, Corp (NYSE 🙂 saw a 49.7% decrease in its quarterly profit due to the stress of supply chains and shortages of raw materials that had weighed down on home deliveries.
Supply chain problems and the soaring costs of raw materials like lumber hampered home sales. Mortgage rates were also rising, which contributed to the problem.
U.S. mortgage rates rose to a record two-year high in the last month. They could rise further, which will put additional pressure on first-time buyers who are struggling to overcome rising home prices and limited housing stock.
Lennar’s orders are an indicator of future revenues. Orders rose by 1% to 15,747 houses in the first quarter while deliveries rose by 2% to 12,538 homes.
From $1 billion (or $3.20) per share one year earlier, net earnings attributable the company dropped to $503.6million, or $1.69 each share, during the first quarter ending Feb.28.
The quarter’s revenue rose by 16.5%, to $6.2 million
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