Homebuilder Lennar Corp. cut its outlook for the third quarter amid the slowing national housing market.
The news from Miami-based Lennar, which has its regional headquarters in Aliso Viejo and major projects in Anaheim and Irvine, is set to have reverberations here.
The company cut its profit forecast by 30% from an earlier view and well below what Wall Street had expected.
Incentives for homebuyers and revaluation of land were behind the lowered outlook.
“The U.S. housing market has continued to deteriorate,” said Stuart Miller, Lennar’s chief executive.
The company said its orders for new homes fell 5% for the quarter.
Lennar didn’t address the local market, where it has become the driving force behind high-rise housing in Anaheim and Irvine and the redevelopment of the former El Toro Marine base.
Orange County’s housing market is stronger than in many parts of the country. But sales here are slowing after years of heady price rises and sales.
The company is the third homebuilder to reduce its earnings forecast in recent days, following similar announcements by Atlanta-based Beazer Homes USA Inc. and Los Angeles-based KB Home.
