MIAMI-With the continued slumping of the housing market, Lennar Corp. reported a $195.6-million net loss, or $1.24 per diluted share, for the fourth quarter which ended Nov. 30, during an earnings call Wednesday.

The net loss for the quarter compared with a $581.2-million net earnings, or $3.54 per diluted share, for Q4 2005. Compared to the previous year, revenues were down 15% for the quarter to $4.3 billion. "Market conditions in the home sector continue to be very difficult," said Lennar Corp. president and CEO Stuart Miller, during the conference call. "While it is not customary for us to comment on market conditions during the middle of a quarter, we have not yet seen market conditions improve to date. As we move through the first six months of 2007, we'll get a clearer reading on where the market is heading."

Despite the slow conditions, Lennar reported that revenues for the 2006 fiscal year were up 17% to $16.3 billion. Revenues from home sales increased 17% in the year ended Nov. 30 to $14.9 billion from $12.7 billion in 2005. Revenues were higher primarily due to a 15% increase in the number of home deliveries in 2006. New home deliveries increased to 47,032 homes in the year ended Nov. 30 from 40,882 homes a year earlier.

To address the softening market conditions, Lennar has focused on strengthening the company's balance sheet. "Our strategy for the past year has been to focus on the balance sheet by lowering our inventory of homes, delivering on the backlog of homes and home sites and reducing our land assets," Miller said.

Part of the company's strategy was executed earlier this year when Lennar and LNR Property Corp. reached an agreement to admit a new partner into an existing joint venture between the two companies. The transaction was valued at $3.5 billion. The joint venture is LandSource Communities Development LLC. The new partner is MW Housing Partners, which is co-managed by MacFarlane Partners and includes the California Public Employees' Retirement System. "This transaction allows us to participate in the ownership and build-out of the land while simultaneously reducing our investment in land and remaining prepared for the future," Miller said.