This year's Fortune 500 list has been released, and the nation's top 8 public homebuilders lost a collective $5.8 billion on revenues of $67 billion in 2007, led by Pulte (-$2.26 billion) and Lennar (-$1.94 billion), which were the leaders in taking impairments for land write-downs and lower prices/incentives. Other builders realized lesser losses -- less than $1 billion -- including KBHome (-$929 million), DR Horton (-$713 million) and Hovnanian Enterprises (-$627 million).
Still, some builders on the list actually managed to squeak out a profit last year, led by NVR, which builds mostly as Ryan Homes ($334 million) and Centex ($268 million).
Not surprisingly, profit margins as a percentage of revenues were paltry or in negative territory, with a median of -9% and ranging from +6% (NVR) to -24% (Pulte Homes).
Want to know how each individual builder performed on this list? Click here for the searchable database.
Wednesday, April 30, 2008
Fortune 500 listing demonstrates public builder pain
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