Housebuilder Lennar Corp. (NYSE:LEN) has warned that two back-to-back hurricanes in the US mean hundreds of home deliveries and orders will be delayed.
Hurricane Irma, one of the most powerful Atlantic storms on record, started in the Caribbean islands last week before heading to Florida Keys on Sunday and moving up the Gulf Coast of the state and dissipating.
It came shortly after Hurricane Harvey, which devastated Texas last month over a four-day period with more than 40 inches of rain in many areas.
As recovery efforts get underway, Lennar said deliveries of about 700 homes would most likely be delayed from its the fiscal fourth quarter ending Nov. 30 to the next fiscal year.
Hurricane Harvey is expected to impact deliveries of 130 homes in the fourth quarter after affecting orders and deliveries of about 120 homes in the third quarter.
Based on an initial assessment of Hurricane Irma, the company said there was only minor damage to its communities from the store.
“The expected shift of deliveries this year not only takes into account damage from the storm but also short-term labour challenges, power outages, potential delays in new home utility connections and building department inspection and permitting delays,” said chief executive Stuart Miller.
“Although we believe the storm damage to be mild, we are in the early stages of assessment and will provide more information on our third quarter earnings call which we are tentatively scheduling for October 3rd, 2017."
Looking ahead to next year, Lennar sees rebuilding activity providing a boost to demand for new homes.
Communities in Texas, Florida, Georgia, and South Carolina account for about 40% of Lennar’s annual homebuilding revenue.