Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Lennar expects Irma to cause delays in home deliveries

Published 09/14/2017, 07:12 AM
Updated 09/14/2017, 07:20 AM
© Reuters. Newly constructed houses built by Lennar Corp are pictured in Leucadia, California

© Reuters. Newly constructed houses built by Lennar Corp are pictured in Leucadia, California

(Reuters) - U.S. homebuilder Lennar Corp (N:LEN) said on Thursday it expects hundreds of home deliveries in Florida, Georgia and South Carolina to be delayed due to the impact of Hurricane Irma that ravaged the Atlantic coast.

Lennar said deliveries of about 700 homes would most likely be delayed from its fiscal fourth quarter ending Nov. 30 to the next fiscal year.

The No.2 U.S. homebuilder said its communities in Texas, Florida, Georgia and South Carolina accounted for about 40 percent of annual homebuilding revenue.

Lennar's Texas communities were hit by Hurricane Harvey, which impacted orders and deliveries of about 120 homes in the third quarter ended Aug. 31, the company said. Harvey is expected to impact deliveries of 130 homes in the fourth quarter, Lennar said.

The company said orders — a key indicator of future revenue for homebuilders — rose 8 percent to 7,610 homes in the third quarter ended Aug. 31. Lennar sold 7,598 homes in the quarter, up 12 percent from a year earlier.

Lennar said there was only minor damage to its communities as a result of Irma, based on a "very preliminary" assessment.

The company expects rebuilding activity to drive demand for new homes next year, Lennar added.

One of the most powerful Atlantic storms on record, Irma bore down on the Caribbean with devastating force as it raked the northern shore of Cuba last week.

It barreled into the Florida Keys island chain on Sunday, before plowing up the Gulf Coast of the state and dissipating.

© Reuters. Newly constructed houses built by Lennar Corp are pictured in Leucadia, California

The death toll from Irma stood at 81, with several hard-hit Caribbean islands accounting for more than half the fatalities.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.