Lennar Posts Second-Quarter Profit on Stronger Margins

Lennar (LEN, LEN.B), one of the nation's largest home builders, posted second-quarter net earnings of $39.7 million, or 21 cents a share, driven by stronger earnings for Rialto Investments and improved gross margins on home sales. The company posted a net loss of $125.2 million, or 76 cents a share, for the second quarter of 2009.

Gross margins on home sales were $143.4 million in the second quarter of 2010, up from $76.1 million in the second quarter of last year. The improvement was largely due to a reduction in valuation adjustments and reduced sales incentives to home buyers, the company said in a statement.

Operating earnings for Rialto Investments were $1.4.7 million in the second quarter, compared with an operating loss of $500,000 for the same quarter last year.

"During the second quarter, we continued to see a housing market that was trying to stabilize," President and Chief Executive Officer Stuart Miller said. "Although challenges still remain in the housing market, we believe that our core businesses are on the right track to achieving sustainable profitability."
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