From the Los Angeles Times

Earnings Roundup

From Times Wire Services

March 28, 2008

Lennar posts loss amid weak market

Lennar Corp., one of the nation's largest home builders, said Thursday that it swung to a loss in the first quarter as it absorbed charges to adjust land values while new-home sales and prices sank amid the stumbling real estate market.

Lennar reported a loss of $88.2 million, or 56 cents a share, in the three months ended Feb. 29 compared with a profit of $68.6 million, or 43 cents, a year earlier. Sales fell 62% to $1.06 billion.

After one-time items, Lennar reported a loss from continuing operations of 18 cents a share. The adjusted results were better than estimates on Wall Street for a loss of $1.07 a share, according to Thomson Financial.

Deliveries of new homes were down 60% to 3,596 homes. New-home orders were down 57% to 3,045, with a cancellation rate of 26%.

Despite the drop in sales and orders, Lennar said it was encouraged that it had no outstanding balance on its credit facility and had $1.1 billion in cash for home building, as of the quarter's end.

Lennar shares rose 31 cents, or 1.8%, to $17.90.

Home-goods chain disappoints

Upscale home-goods retailer Williams-Sonoma Inc. posted a higher quarterly profit, but its shares fell 4% after it forecast disappointing earnings for the current fiscal year on tough economic conditions.

The owner of the Williams-Sonoma, Pottery Barn and West Elm chains forecast earnings per share of $1.42 to $1.56 for the fiscal year that began Feb. 4. Analysts, on average, were expecting $1.62, according to Reuters Estimates.

For the current quarter, Williams-Sonoma said it expected results of break-even to earnings of 3 cents a share.

For the fourth quarter, Williams-Sonoma posted higher-than-expected earnings, helped by one more week of sales than a year earlier and a lower tax rate. The company had cut its outlook for the quarter in January.

Net income rose to $124.6 million, or $1.15 a share, from $121.1 million, or $1.06, a year earlier.

Revenue rose 9.5% to $1.37 billion in the fourth quarter, even as sales at stores open at least a year fell 0.1%.

For the current quarter, the company expects sales at stores to fall between 8.5% and 6%.

Shares of the San Francisco-based company fell $1.24 to $23.75.

Sempra forecasts profit gain in '09

Sempra Energy, owner of the largest U.S. natural-gas utility, expects 2009 per-share profit to rise to $4.35 to $4.60 as the company opens natural-gas import terminals and extends pipeline operations. Its shares rose 3.9%.

Sempra, based in San Diego, was expected to earn $4.58 a share, excluding one-time items, next year, according to a Bloomberg survey.

Sempra expects to complete two gas-import terminals in Baja California and Louisiana this year. A $4.4-billion pipeline venture with ConocoPhillips and Kinder Morgan Energy Partners began interim shipments from Colorado to Kansas in January, with full service to Ohio expected by mid-2009.

The company affirmed its previous forecast for 2008 profit, excluding some items, of $3.65 to $3.85 a share.

Its shares rose $1.98 to $53.

From Times Wire Services