(Reuters) – U.S. homebuilder Lennar Corp posted a 49.7% fall in quarterly profit on Wednesday, as stressed supply chain and shortage of raw materials weighed on deliveries of homes.
Home sales were limited by continuing supply chain disruptions and soaring cost of raw materials such as lumber, with rising mortgage rates adding to the drag.
U.S. mortgage rates increased to a two-year high last month and could keep rising, a trend which may further squeeze first-time buyers struggling to overcome higher home prices and limited housing supply.
Lennar’s orders, an indicator of future revenue, rose 1% to 15,747 homes in the first quarter, while deliveries increased 2% to 12,538 units.
Net earnings attributable to the company fell to $503.6 million, or $1.69 per share, in the first quarter ended Feb.28, from $1 billion, or $3.20 per share, a year earlier.
Revenue rose 16.5% to $6.2 billion in the quarter.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh Kuber)