Lennar 2Q loss narrows; sees worsening conditions

"The housing market has continued to deteriorate throughout the first half of 2008. We expect that this trend is going to continue for at least the remainder of the year," Miller told analysts in a conference call after the builder disclosed its financial report card.

Faced with the prospect of ongoing housing doldrums, Miller echoed the building industry's call for the federal government to step in to help break the cycle of rising foreclosures, stagnating home sales and skidding home prices.

"In this fix is the bright light that I see at the end of home building's dark tunnel," he said.

For the three months ended May 31, the Miami-based builder reported a loss of $120.9 million, or 76 cents per share. That compares with a loss of $244.2 million, or $1.55 per share, in the same period a year earlier.

The latest quarter included a 60 cent per share charge stemming from write-downs and write-offs related to land option deposits and other costs.

Revenue plunged 61 percent to $1.1 billion from $2.8 billion last year.

Analysts surveyed by Thomson Financial were expecting a loss of 55 cents per share on revenue of $1.09 billion. The earnings estimates typically exclude one-time items.

Lennar shares tumbled $1.23, or 8.4 percent, to $13.34 on Thursday.

Like other home builders, Lennar has been struggling to compete for buyers amid a glut of foreclosed properties and other unsold homes on the market.