The Company is in the process of completing its inventory valuation analysis, and presently anticipates that it will incur pretax inventory valuation adjustments, write-offs of deposits and preacquisition costs related to land under option that the Company does not intend to purchase and valuation adjustments to its investments in unconsolidated entities within a range of $400 million to $500 million during the fourth quarter of 2006.

That seems like a lot of money even for a home builder.

“Market conditions continued to weaken throughout the fourth quarter and we have not yet seen tangible evidence of a market recovery,” Stuart Miller, president and CEO of Lennar Corp., said in a statement.

Lennar also sold some land, …er, I mean Lennar took on a new strategic partner in a joint land venture. Lennar will get $660 million.

I would guess Lennar will have an excellent January-March quarter because they are dumping all the bad news into the October-December 2006 quarter.